A Panel Data Analysis of Chinas Trade Pattern with OPEC Members: Gravity Model Approach

Muhammad Saqib Irshad (), Qi Xin (), Saleh Shahriar () and Hamza Arshad ()

Asian Economic and Financial Review, 2018, vol. 8, issue 1, 103-116

Abstract: In this study, we have endeavoured to explain China’s trade pattern with OPEC member countries by employing gravity model over the period 1990-2016. The estimation results demonstrate that the gravity equation fits the data pragmatically. China was the first biggest oil importer worldwide with about 73 per cent of her oil coming from OPEC member countries. In fact, energy can be considered as the most traded commodity and also the core reason for the trade volume growth between China and the OPEC member countries in last two decades. We have confirmed that China’s bilateral trade with OPEC members positively impacts on GDP, income (GDP per capita), trade openness in China and the WTO member countries in OPEC. While negatively influence on distance (trade cost) and supports Linder hypothesis. Depreciation in bilateral exchange rates also negatively influence on China’s bilateral trade with OPEC.

Keywords: Gravity model; China; OPEC; Energy; Panel data; Trade pattern (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/1664/2438 (application/pdf)
https://archive.aessweb.com/index.php/5002/article/view/1664/3046 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:v:8:y:2018:i:1:p:103-116:id:1664

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().