A Panel Data Analysis of South Korea’s Trade with OPEC Member Countries: The Gravity Model Approach
Abstract T his paper explains bilateral trade patterns between South Korea and thirteen OPEC member countries over the period 1980-2014 using a gravity model. The estimation results show that the gravity equation fits the data reasonably well. We confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - GDP, income (GDP per capita), the difference in income, exchange rate, the openness level, distance and WTO membership – through the Fixed effects (FE), Random effects (RE) and the FMOLS approaches. The findings show that the trade pattern between South Korea and OPEC member countries relies on the Heckscher-Ohlin (H-O) theory, thus being explained by difference in factor endowments such as energy resources and technology. It is also found out that South Korea – OPEC trade is well explained by the factors that influence the energy security of South Korea such as oil reserves, transportation costs and political stability.
abstract t his paper explains bilateral trade patterns between south korea and thirteen opec member countries over the period 1980-2014 using a gravity model. the estimation results show that the gravity equation fits the data reasonably well. we confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - gdp, income (gdp per c...متن کامل
As a result of recent developments, global economic centre of gravity has slide to Asia-Pacific region. It is predicted that Asia-Pacific countries will take place at the first row in global trade and nearly a half of the total trade will intensify in this region at the year 2030. On the other hand, the region covers countries from different levels of development. These features of the region p...متن کامل
the aim of this thesis is an approach for assessing insurer’s solvency for iranian insurance companies. we use of economic data with both time series and cross-sectional variation, thus by using the panel data model will survey the insurer solvency.
Attempts are made to provide a theoretical justification for using the gravity model in the analysis of bilateral trade and apply the generalized gravity model to analyse the Bangladesh’s trade with its major trading partners using the panel data estimation technique. We have estimated the gravity model of trade (sum of exports and imports), the gravity model of export and the gravity model of ...متن کامل
survey of trade potentials between iran and the member countries of shanghai cooperation organization (sco): the gravity model approach
The Role of Intermediate and Capital Goods Imports in Non-Oil Exports in OPEC Countries: Spatial Dynamic Panel Data Approach
One of the issues discussed in the international economics literature is the type and amount of imported goods. The main reason for these disputes is the negative impact of imports on the domestic economy. On the other hand, some experts believe that there are some types of import that do not lead to increase the dependency and not reduce the sustainable development of the importing country. Th...متن کامل
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دوره 20 شماره 2
صفحات 203- 224
تاریخ انتشار 2016-04-01
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