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Analyzing energy trade policy in Central Asia using the intercountry trade force approach

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  • Rasoulinezhad, Ehsan
  • Sung, Jinsok
  • Talipova, Amina
  • Taghizadeh-Hesary, Farhad

Abstract

The main purpose of this study is to examine the energy trade pattern of Central Asian economies, which are regarded as significantly rich in natural resources. To this end, the generalized method of moments (GMM) based on the intercountry trade force approach, and data from 2001–2018 are employed. The empirical results confirm the significant impacts of the gravity index, free space of trade, and urbanization level in shaping Central Asia’s energy trade patterns. Our main conclusion is that variables have different impacts on the trade directions of imports and exports. In addition, geographical location and language factors are crucial for shaping the energy trade policies of Central Asia. The study’s main economic policy implication is in fostering the free flow of energy to achieve better economic integration in Central Asia. In addition, to promote the energy infrastructure of the region, cooperation and participation of the countries in regional projects like the Belt and Road Initiative (BRI) of China is recommended.

Suggested Citation

  • Rasoulinezhad, Ehsan & Sung, Jinsok & Talipova, Amina & Taghizadeh-Hesary, Farhad, 2022. "Analyzing energy trade policy in Central Asia using the intercountry trade force approach," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 441-454.
    • Handle: RePEc:eee:ecanpo:v:73:y:2022:i:c:p:441-454
    DOI: 10.1016/j.eap.2021.12.003
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    More about this item

    Keywords

    Energy trade policy; Intercountry trade force (ITF) theory; Dynamic panel data; Central Asia;
    All these keywords.

    JEL classification:

    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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