IDEAS home Printed from
   My bibliography  Save this article

The Impact of ICT on Trade in Persian Gulf Countries


  • Tayebeh Farahani

    (Assistant Professor, Faculty of Economics, Islamic Azad University of Buin Zahra)

  • Reza Parvardeh

    (M.A. Student of Islamic Azad University of Arak)


Information and Communications Technologies( ICT) are transforming our world on a daily basis. In a fast-moving global economy, international trade, by adopting electronic technologies, could save billions of dollars every year. ICT development which has lead to faster, cheaper and more efficient modes of trade by reducing transactions costs. Due to the network characteristic of ICT, trade enhances when both trading partners have advanced ICT developments. The study analyzes empirically this theoretical argument. A gravity model is applied to assess the impact of ICT development on trade in Persian Gulf countries. In this study, it was tried to investigate the impact of ICT on business in the neighboring countries to the Persian Gulf. The obtained results from the gravity model assessment using panel data method for the countries of Iran, Bahrain, Iraq, Saudi Arabia, Oman, Kuwait, Qatar, and UAE from 2001 to 2009 showed that the better ICT development infrastructures the countries have, the more their business exchanges increase. In fact, for country business partners to increase business exchanges, it is imperative to have proper ICT development.

Suggested Citation

  • Tayebeh Farahani & Reza Parvardeh, 2012. "The Impact of ICT on Trade in Persian Gulf Countries," Iranian Economic Review, Economics faculty of Tehran university, vol. 17(2), pages 63-73, spring.
  • Handle: RePEc:eut:journl:v:17:y:2012:i:2:p:63

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Baldwin, Richard & Taglioni, Daria, 2006. "Gravity for Dummies and Dummies for Gravity Equations," CEPR Discussion Papers 5850, C.E.P.R. Discussion Papers.
    2. Baldwin, Richard, 1988. "Hyteresis in Import Prices: The Beachhead Effect," American Economic Review, American Economic Association, vol. 78(4), pages 773-785, September.
    3. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    4. Scott L. Baier & Jeffrey H. Bergstrand & Peter Egger & Patrick A. McLaughlin, 2008. "Do Economic Integration Agreements Actually Work? Issues in Understanding the Causes and Consequences of the Growth of Regionalism," The World Economy, Wiley Blackwell, vol. 31(4), pages 461-497, April.
    5. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
    6. Bob Baulch, 1997. "Transfer Costs, Spatial Arbitrage, and Testing for Food Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 477-487.
    7. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    Full references (including those not matched with items on IDEAS)

    More about this item


    ICT; Trade; Panel Data;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:17:y:2012:i:2:p:63. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ([z.rahimalipour]). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.