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Volume :17 Issue : 1 2010      Add To Cart                                                                    Download

Determinants of International Trade Flow for the GCC Countries and its Trade Partners: A Gravity Model Analysis

Auther : Mohammed A. Aljarrah

This paper investigates the determinants of international trade flow for the GCC countries and its main trade partners. To achieve this objective, the paper utilizes a gravity model analysis for the period 1992 to 2004. The main findings of the paper include: Trade flows are affected significantly by GDP and population, of both exporters and importers. Moreover, common borders and common language as well as geographical distance play important role in explaining trade flows. The results also support Linder hypothesis. Finally, the study failed to provide concrete evidence of the contribution of trade preferential agreement in advancing trade within GCC countries.

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