IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0537.html
   My bibliography  Save this article

Bilateral Trade Flows in the Gulf Cooperation Council Countries : What happend to the Middle East Integration after 2003?

Author

Listed:
  • Insel, Aysu

    () (Marmara University)

  • Tekce, Mahmut

    () (Marmara University)

Abstract

It is well known that the GCC countries are heavily dependent on oil and hydrocarbon industries, but during the 2003-2008 period, economic diversification is proceeded; enhancing the role of the private sector, encouraging FDI, and laying the ground for competitive integration in the globalization process. The year 2003 is special for the economic integration within the GCC due to the introduction of the custom union and high growth. This paper analzes the trade flows of the GCC countries before and after the signature of the Custom Union agreement in 2003. Fixed effects panel models have been estimated using the LS and GMM methods. It has been found that the year 2003 is special for the GCC countries. The year 2003 indicates the turning points in the intra-GCC trade and also in the GCC trade with the rest of the world. The results show that the 2003 Custom Union agreement has not fostered the intra-GCC trade, except for the United Arab Emirates, and also that the order of top fifteen trade partners has changed significantly from the EU countries and the US to the Asian countries after 2003. Additionally, the exports and imports of the GCC countries are related to the wealth of partner countries, but not distance. These results have important implications for the economic, cultural and political issues in trade negotiations to provide any trade incentive for the GCC countries.

Suggested Citation

  • Insel, Aysu & Tekce, Mahmut, 2011. "Bilateral Trade Flows in the Gulf Cooperation Council Countries : What happend to the Middle East Integration after 2003?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 244-275.
  • Handle: RePEc:ris:integr:0537
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roesmara Donna, Duddy & Widodo, Tri & Adiningsih, Sri, 2018. "Do RTAs Increase Bilateral Trade in the MENA Region?," MPRA Paper 85254, University Library of Munich, Germany.

    More about this item

    Keywords

    Gulf Cooperation Council Countries; Trade Flows; Gravity Model; Panel Analysis;

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    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:ris:integr:0537. 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: (Jong-Eun Lee). General contact details of provider: http://edirc.repec.org/data/desejkr.html .

    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.

    We have no references for this item. You can help adding them by using 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.