A Gravity Approach to Determinants of Export in a Small Open Economy: ?Evidence from Jordan

Metri Mdanat, Taleb A. Warrad, Loay M. Salhieh and Talah S. Arabiyat
Additional contact information
Taleb A. Warrad: Department of Business Economics, Jordan,
Loay M. Salhieh: Department of Logistic Sciences, German Jordanian University, Jordan,
Talah S. Arabiyat: Department of Management Sciences, German Jordanian University, Jordan.

International Journal of Economics and Financial Issues, 2018, vol. 8, issue 2, 40-46

Abstract: This study seeks to identify the main factors affecting exports in small open economies. It uses panel data from 2001 to 2014 and a gravity model to identify these factors in one such economy. Our results are relevant for policymakers in small economies which engage in free trade agreements and trade liberalization to pursue economic development via trade openness and investment. We found mixed results as to the? ?direction of the relationship between free trade agreements and exports, a positive ?contribution of relative income in boosting exports and negative distortionary effects of distance ?and costs on exports.? These findings suggest that there are differential impacts of trade liberalization over time on the export performance of small open economies. Hence, policies aiming to maximize the benefits of trade agreements and reduce costs may be helpful in promoting exports.

Keywords: Gravity model; Export determinants; Economic growth. (search for similar items in EconPapers)
JEL-codes: F1 F13 F43 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/6003/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/6003/pdf (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:eco:journ1:2018-02-6

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().