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The competitive advantage in The Middle East. An empirical approach

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  • Scorbureanu, Alexandrina Ioana

Abstract

This paper explores the determinants of bilateral trade flows among Jordan, Israel and the Palestinian territories during the last 15 years. A gravity model is applied to international trade flows and empirically tested in order to investigate the relationship between the volume and direction of international trade in order to identify competitive advantage areas. Furthermore, the standard gravity model is augmented with additional variables to test whether they are relevant in explaining trade. These variables are infrastructure endowments and per capita incomes. Finally, we analyse to what extent potentials for trade between these two economic areas are important.

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File URL: http://mpra.ub.uni-muenchen.de/17965/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17965.

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Date of creation: 22 Jun 2007
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Handle: RePEc:pra:mprapa:17965

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Keywords: gravity models; estimation; trade; Middle Asia;

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  1. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
  2. Spiros Bougheas & Panicos Demetriades & Edgar Morgenroth, 1996. "Infrastructure, Transport Costs and Trade," Keele Department of Economics Discussion Papers (1995-2001) 96/7, Department of Economics, Keele University.
  3. Alan V. Deardorff, 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Working Papers 5377, National Bureau of Economic Research, Inc.
  4. Diao, Xinshen & Somwaru, Agapi, 2000. "An Inquiry on General Equilibrium Effects of MERCOSUR--An Intertemporal World Model," Journal of Policy Modeling, Elsevier, vol. 22(5), pages 557-588, September.
  5. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
  6. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
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