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Do Politics and Culture Affect Middle East Trade? Evidence from the Gravity Model

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  • Mehanna Dr Rock-Antoine

    (Lebanese Amercican University)

Abstract

This paper estimates the effects of politics and culture on Middle East trade by applying an augmented version of the gravity model. The econometric specification of the model accounts for oil-exporting countries, regional trade blocs and other pertinent exogenous factors. The model endogenously accounts for potential selection-bias between Arab and Islamic countries. Unlike past and contemporary work, this paper employs a Middle Eastern framework by incorporating politics, corruption and culture. The levels of corruption and political freedom represent politics, while language affiliation and religion capture some aspects of culture.

Suggested Citation

  • Mehanna Dr Rock-Antoine, 2003. "Do Politics and Culture Affect Middle East Trade? Evidence from the Gravity Model," Review of Middle East Economics and Finance, De Gruyter, vol. 1(2), pages 57-72, August.
  • Handle: RePEc:bpj:rmeecf:v:1:y:2003:i:2:n:4
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    References listed on IDEAS

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    1. Mazumdar, Joy, 2001. "Imported machinery and growth in LDCs," Journal of Development Economics, Elsevier, vol. 65(1), pages 209-224, June.
    2. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    4. Karolina Ekholm & Johan Torstensson & Rasha Torstensson, 1996. "The Economics of the Middle East Peace Process: Are There Prospects for Trade and Growth?," The World Economy, Wiley Blackwell, vol. 19(5), pages 555-574, September.
    5. Jean Ensminger, 1997. "Transaction Costs and Islam: Explaining Conversion in Africa," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(1), pages 1-4, March.
    6. Summary, Rebecca M, 1989. "A Political-Economic Model of U.S. Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 179-182, February.
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    Cited by:

    1. C. Umana Dajud, 2013. "Political Proximity and International Trade," Economics and Politics, Wiley Blackwell, vol. 25(3), pages 283-312, November.
    2. Kula, Ferit & Aslan, Alper, 2008. "Turkiye’nin ortadogu’da ekonomik gelecegi: Turkiye’nin ihracat potansiyeline yonelik ampirik bir analiz," MPRA Paper 10688, University Library of Munich, Germany.

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