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A Gravity Approach to Determinants of Export in a Small Open Economy: ?Evidence from Jordan

Author

Listed:
  • Metri F. Mdanat

    (Department of Management Sciences, German Jordanian University, Jordan University, Jordan)

  • Taleb A. Warrad

    (Department of Business Economics, Jordan,)

  • Loay M. Salhieh

    (Department of Logistic Sciences, German Jordanian University, Jordan,)

  • Talah S. Arabiyat

    (Department of Management Sciences, German Jordanian University, Jordan.)

Abstract

This study seeks to identify the main factors affecting exports in small open economies. It uses panel data from 2001 to 2014 and a gravity model to identify these factors in one such economy. Our results are relevant for policymakers in small economies which engage in free trade agreements and trade liberalization to pursue economic development via trade openness and investment. We found mixed results as to the? ?direction of the relationship between free trade agreements and exports, a positive ?contribution of relative income in boosting exports and negative distortionary effects of distance ?and costs on exports.? These findings suggest that there are differential impacts of trade liberalization over time on the export performance of small open economies. Hence, policies aiming to maximize the benefits of trade agreements and reduce costs may be helpful in promoting exports.

Suggested Citation

  • Metri F. Mdanat & Taleb A. Warrad & Loay M. Salhieh & Talah S. Arabiyat, 2018. "A Gravity Approach to Determinants of Export in a Small Open Economy: ?Evidence from Jordan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 40-46.
    • Handle: RePEc:eco:journ1:2018-02-6
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Shahid Hassan & Amna Kausar & Noman Arshed, 2022. "Investigating Export Determinants: A Time Series Evidence From Canada," SAGE Open, , vol. 12(2), pages 21582440221, June.
    2. Saghir Pervaiz GHAURI & Hina QADIR & Rizwan Raheem AHMED & Dalia STREIMIKIENE & Justas STREIMIKIS, 2022. "The Exports Performance of Pakistan: Evidence from the ARDL Cointegration Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 150-168, December.
    3. Ibrahim Alshomaly & Walid Shawaqfeh, 2020. "The Effect of Export Diversification on the Economic Growth of West-Asian Arab Countries," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(2), pages 429-450, April.
    4. Qudah SUFYAN, 2022. "Empirical Evidence on the International Business Approach: The Case of Jordan Companies," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 47-53.
    5. Roseline Misati & Kethi Ngoka, 2021. "Constraints on the performance and competitiveness of Tanzania's manufacturing exports," WIDER Working Paper Series wp-2021-35, World Institute for Development Economic Research (UNU-WIDER).
    6. Ibrahim Alshomaly & Walid Shawaqfeh, 2020. "The Effect of Export Diversification on the Economic Growth of West-Asian Arab Countries," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(2), pages 429-450, April.

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    More about this item

    Keywords

    Gravity model; Export determinants; Economic growth.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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