The Determinants of Intra-Industry Trade in Energy Sector among Iran and its Major Trading Partners

Yazdani, Mehdi; Pirpour, Hamed

doi:10.29252/jemr.8.30.43

Volume 8, Issue 30 (12-2017) jemr 2017, 8(30): 43-78 | Back to browse issues page

‎ 10.29252/jemr.8.30.43

‎ 20.1001.1.22286454.1396.8.30.5.6

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Yazdani M, Pirpour H. The Determinants of Intra-Industry Trade in Energy Sector among Iran and its Major Trading Partners. jemr 2017; 8 (30) :43-78
URL: http://jemr.khu.ac.ir/article-1-1583-en.html

The Determinants of Intra-Industry Trade in Energy Sector among Iran and its Major Trading Partners

Mehdi Yazdani ^*

¹, Hamed Pirpour²

1- Shahid Beheshti University , ma_yazdani@sbu.ac.ir
2- Shahid Beheshti University

Abstract: (7931 Views)

Due to the more dependence among countries and the raised demand for energy, the energy trade have increased during recent decades, while its major share is intra-industry trade (IIT). In this regard, countries are trying to exploit the diversity of a particular product, as well as the technology transfer and knowledge of technology which generated by IIT in this sector. According to the importance of role of IIT in the economies, this study will identify the determinants of IIT in the energy sector among Iran and its major trading partners using gravity model and Poisson pseudo-maximum-likelihood (PPML) method during 1997-2016. Based on the results, the effects of gross domestic product (GDP) per capita of Iran and the selected countries, the products’ diversification in the energy sector of Iran and its partners, access to the open sea for Iran's trading partners, and foreign direct investment (FDI) in the energy sector in Iran are significant and positive on IIT. However, the geographical distance, transportation costs, and trade imbalances among Iran and the selected countries have had the significant and negative effects on IIT

Keywords: Energy Sector, IIT, Gravity Model, Trade Costs, PPML

Full-Text [PDF 473 kb] (2062 Downloads)

Type of Study: Applicable | Subject: تجارت و مالیه بین الملل
Received: 2017/06/23 | Accepted: 2017/12/20 | Published: 2018/03/6

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