Mehdi Yazdani; Mojtaba SharifiShifteh
Abstract
During recent years, the growth of international trade has been more than that of world output, and countries have shown more interest in forming regional unions and agreements to increase their trade. The aim of this study is to estimate the net effect of D8 formation on trade of its member countries. ...
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During recent years, the growth of international trade has been more than that of world output, and countries have shown more interest in forming regional unions and agreements to increase their trade. The aim of this study is to estimate the net effect of D8 formation on trade of its member countries. In this regards, a gravity model has been applied using panel data method for period 1990-2014, in accordance with a Difference-in-Differences (DID) approach and Poisson-Pseudo maximum likelihood method. The D8 countries are selected as target group and select member countries of Organization of Islamic Cooperation are chosen as control group. Our Results show that the net effect of D8 formation on trade among its member countries is positive and significant. Also, the bilateral trade among member countries has had a direct relationship with their size and common language and inverse relation with the distance between them.
Mahdi Yazdani; Hadi Ramezani; Mina Sadeghi
Abstract
Generally, transportation costs are one of the important factors on trade flows. This variable is affected by the distance between countries as well as type of traded goods by international transit network. By using a nonlinear gravity model and Poisson-Pseudo maximum likelihood method, this study tries ...
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Generally, transportation costs are one of the important factors on trade flows. This variable is affected by the distance between countries as well as type of traded goods by international transit network. By using a nonlinear gravity model and Poisson-Pseudo maximum likelihood method, this study tries to investigate the effects of these factors as border effects on Iranian trade flows with its 30 major partners during 1992-2014. The results show that except for third group of goods (animal or vegetable fats and oils), import, export and total trade of the other 20 groups of goods have been negatively affected by distance between Iran and its partners and border effects have had an important role in this regard. Twenty-first group (Works of art, collector’s pieces and antiques), first group (live animal and animal products) and seventh group (plastic and rubber) for import flow of goods, first group, tenth group (Pulp of wood or of other fibrous cellulosic material; recovered) and twelfth group (Footwear, headgear, sun umbrellas, walking – sticks, whips, riding - crops) for export flow of goods and finally twenty-first, first and seventh groups for trade flow of goods have respectively been influenced more by distance.