Harb, Nasri (2006): Trade Between Euro Zone and Arab Countries: a Panel Study. Published in: Applied Economics , Vol. 39, No. 16 (2007): pp. 2099-2107.
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We construct an aggregate data panel to estimate price and income elasticities of the Arab countries imports from and exports to euro zone. We study the non-stationarity of our series and verify the cointegration hypothesis among the variables using Pedroni's heterogeneous panel cointegration tests (2004). The panel data circumvent the problem of short span sample and increase the power of the non stationarity tests. Then, we estimate the idiosyncratic and panel cointegrating vectors using DOLS (Kao and Chiang, 2000), FMOLS (Phillips and Hansen, 1990) and group-mean DOLS and FMOLS developed by Pedroni (2000, 2001). Our variables are shown to be cointegrated. Arab imports from Euro zone countries are income inelastic, but price elastic. Results of export function are not conclusive and depend on the used estimator.
|Item Type:||MPRA Paper|
|Original Title:||Trade Between Euro Zone and Arab Countries: a Panel Study|
|Keywords:||Imports, Exports, Time series, Panel Cointegration, DOLS, FMOLS|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F40 - General
F - International Economics > F3 - International Finance > F30 - General
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
|Depositing User:||Nasri Harb|
|Date Deposited:||28. Feb 2009 11:57|
|Last Modified:||13. Feb 2013 13:28|
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