IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

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

Listed author(s):
  • Insel, Aysu


    (Marmara University)

  • Tekce, Mahmut


    (Marmara University)

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.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" 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.

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 26 (2011)
Issue (Month): ()
Pages: 244-275

in new window

Handle: RePEc:ris:integr:0537
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

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)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.