چکیده:
This 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.
خلاصه ماشینی:
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 WTOmembership – through the Fixed effects (FE), Random effects (RE) andthe FMOLS approaches.
In this paper, we try to use a gravity model to investigate the bilateral trade between South Korea and the 13 OPEC member countries during the period 1980 to 2014.
(2013), Sharma(1989) and Sohn(2005), we do not find any study, considering the analysis of South Korean bilateral trade with OPEC member countries through a gravity model.
1 Dataset Description This study covers bilateral trade between South Korea and OPEC which consists of 13 member countries (Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela)1 over the period 1980 to 2014.
In this study, we employ a gravity model, recently developed by Narayan & Nguyen(2016) to model bilateral trade flow between South Korea and OPEC countries.
6. Conclusion and Policy Implications This study mainly investigates the impacts of GDP, GDP per capita, differences of GDP per capita, bilateral exchange rate, the openness level, distance and WTO membership on the South Korea – 13 OPEC member countries bilateral trade through the estimations of a gravity model from 1980 to 2014.
All in all, we confirmed that the gravity model explains well the trade flows between South Korea and the OPEC member countries.