What is the Trade Response of the Regional Grouping in the GCC Countries?

25 Pages Posted: 24 Jun 2011 Last revised: 24 Mar 2012

See all articles by Nasser Al-Mawali

Nasser Al-Mawali

affiliation not provided to SSRN

Ruhul Salim

Curtin University - Curtin Business School; Curtin University - Centre for Research in Applied Economics

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Date Written: June 21, 2011

Abstract

This paper examines whether the GCC exerted any trade enhancing impact on its members by employing a standard augmented gravity model. Unbalanced panel data sets are constructed over the period of 1980 to 2008 for imports and exports of the bloc’s main trading partners along with GCC countries. Several diagnostic tests were run to check and rectify possible problems of heteroskedasticity and autocorrelation as well as cross-sectional dependence. The principal findings of Prais-Winsten regression, allowing for heteroskedasticity, panel-specific AR(1) and contemporaneous correlation, suggest that the trade enhancing effect of the bloc is significant.

Suggested Citation

Al-Mawali, Nasser and Salim, Ruhul, What is the Trade Response of the Regional Grouping in the GCC Countries? (June 21, 2011). SIBR 2011, Available at SSRN: https://ssrn.com/abstract=1869380 or http://dx.doi.org/10.2139/ssrn.1869380

Nasser Al-Mawali (Contact Author)

affiliation not provided to SSRN ( email )

Ruhul Salim

Curtin University - Curtin Business School ( email )

GPO Box U1987
Perth, WA WA
Australia

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

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