The Impact of Jordan Free Trade Agreements on Trade Flows
| Autor: | Murad Ahmad Al Tarawneh, Taleb Awad-Warrad |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
05 social sciences
Trade creation International economics Gross domestic product International free trade agreement Gravity model of trade 0502 economics and business Per capita Economics media_common.cataloged_instance 050207 economics European union Trade diversion Free trade 050203 business & management media_common |
| Zdroj: | International Journal of Business and Economics Research. 9:228 |
| ISSN: | 2328-7543 |
| Popis: | This study aimed to evaluate the impact of Jordan Free Trade Agreements (FTAs) with 17 Arab countries (Greater Arab Free Trade Area (GAFTA)), United States of America (USA) and European Union (EU) on Jordan trade flows. A Gravity model is used to estimate the impact of FTAs in term of trade creation and trade diversion. The study utilizes a panel data sample coving 125 selected countries trading with Jordan for the period 1997-2017. The study used Feasible Generalized Least Squares (FGLS) to estimate the Gravity model. The study results showed a significant impact of Jordan Gross Domestic Product (GDP), trade partners GDP, Jordan GDP Per Capita (GDPC), trade partners GDPC, distance, common language and border variables on Jordan trade. Further, the differences between Jordan and trade parents GDPs showed an insignificant impact on Jordan trade which implies that most of Jordan trade is among trade partners whom have significant different size of GDP. Furthermore, Jordan – EU agreement showed a significant imports trade creation and exports trade diversion. Jordan – USA agreement showed an imports trade diversion and extra regional exports expansion. Finally, Jordan – GAFTA agreement has a significant import and exports trade creation. |
| Databáze: | OpenAIRE |
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