Intra-industry Trade between Iran and Regional Blocs

In this paper, we analyze the determinants of Intra-Industry trade (IIT) between Iran and her trading partners, i.e. European :union:, ECO, GCC and ASEAN countries using dynamic panel data and GMM during 1997-2009. This study uses country-specific characteristics such as economic size, per capita in...

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Main Authors: amirreza soori, Ahmad Tashkini
Format: Article
Language:fas
Published: Tarbiat Modares University 2014-03-01
Series:پژوهشهای اقتصادی
Subjects:
Online Access:http://ecor.modares.ac.ir/article-18-997-en.pdf
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author amirreza soori
Ahmad Tashkini
author_facet amirreza soori
Ahmad Tashkini
author_sort amirreza soori
collection DOAJ
description In this paper, we analyze the determinants of Intra-Industry trade (IIT) between Iran and her trading partners, i.e. European :union:, ECO, GCC and ASEAN countries using dynamic panel data and GMM during 1997-2009. This study uses country-specific characteristics such as economic size, per capita income, foreign direct investment, geographical distance, and trade imbalance as explanatory variables. The results indicate that economic size, per capita income, and geographical distance explain most of IIT between Iran and her trading partners. According to econometric findings, the economic size has high and positive correlation with IIT, however per capita income affects negatively IIT. Thus, differences in aggregate demand and supply should be considered in selecting trade partners. The similarity in income structure leads to same demand structure and expansion of trade volume. In addition, geographical distance and trade imbalance has negative effect on IIT flow in Iran.
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spelling doaj.art-92e8eab2dc9f47b8a03b5f64dd90285b2023-06-15T20:41:12ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322014-03-01141193216Intra-industry Trade between Iran and Regional Blocsamirreza soori0Ahmad Tashkini1 Ph.D. Student of Economics and Faculty member of Institute for Trade Studies and Research (ITSR), Associate Professor of Economics, Institute for Trade Studies and Research (ITSR In this paper, we analyze the determinants of Intra-Industry trade (IIT) between Iran and her trading partners, i.e. European :union:, ECO, GCC and ASEAN countries using dynamic panel data and GMM during 1997-2009. This study uses country-specific characteristics such as economic size, per capita income, foreign direct investment, geographical distance, and trade imbalance as explanatory variables. The results indicate that economic size, per capita income, and geographical distance explain most of IIT between Iran and her trading partners. According to econometric findings, the economic size has high and positive correlation with IIT, however per capita income affects negatively IIT. Thus, differences in aggregate demand and supply should be considered in selecting trade partners. The similarity in income structure leads to same demand structure and expansion of trade volume. In addition, geographical distance and trade imbalance has negative effect on IIT flow in Iran.http://ecor.modares.ac.ir/article-18-997-en.pdfintra-industry traderegional blocsindustry sectordynamic panel dataeconomic scalegmm
spellingShingle amirreza soori
Ahmad Tashkini
Intra-industry Trade between Iran and Regional Blocs
پژوهشهای اقتصادی
intra-industry trade
regional blocs
industry sector
dynamic panel data
economic scale
gmm
title Intra-industry Trade between Iran and Regional Blocs
title_full Intra-industry Trade between Iran and Regional Blocs
title_fullStr Intra-industry Trade between Iran and Regional Blocs
title_full_unstemmed Intra-industry Trade between Iran and Regional Blocs
title_short Intra-industry Trade between Iran and Regional Blocs
title_sort intra industry trade between iran and regional blocs
topic intra-industry trade
regional blocs
industry sector
dynamic panel data
economic scale
gmm
url http://ecor.modares.ac.ir/article-18-997-en.pdf
work_keys_str_mv AT amirrezasoori intraindustrytradebetweeniranandregionalblocs
AT ahmadtashkini intraindustrytradebetweeniranandregionalblocs