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    Does more trade potential remain in Arab states of the Gulf?

    Access Status
    Fulltext not available
    Authors
    Salim, Ruhul
    Kabir, M.
    Mawali, N.
    Date
    2011
    Type
    Journal Article
    
    Metadata
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    Citation
    Salim, Ruhul A. and Kabir, Mohammad Mahfuz and Mawali, Nasser Al. 2011. Does more trade potential remain in Arab states of the Gulf? Journal of Economic Integration. 26 (2): pp. 217-243.
    Source Title
    Journal of Economic Integration
    ISSN
    1225-651X
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/26659
    Collection
    • Curtin Research Publications
    Abstract

    This paper examines whether the Gulf Cooperation Council Countries (GCC) exerted any trade enhancing impact on its members by employing standard augmented gravity model as well as stochastic frontier gravity model. Panel data sets are constructed over the period of 1980 to 2008 for imports and exports of the bloc’s main trading partners along with GCC countries. The major finding is that the trade enhancing effect of the bloc is significant. However, there is still huge unutilized trade potential between the member countries. Several diagnostic tests were run to check and rectify possible problems of heteroskedasticity and autocorrelation as well as cross-sectional dependence.

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