The impact of free trade on GDP per capita : the GCC perspective
Other Title(s)
تأثر التجارة الحرة من الناتج المحلي الإجمالي للفرد : من منظور دول مجلس التعاون الخليجي
Author
Source
University of Sharjah Journal for Humanities and Social Sciences
Issue
Vol. 12, Issue 2 (31 Dec. 2015), pp.21-35, 15 p.
Publisher
Publication Date
2015-12-31
Country of Publication
United Arab Emirates
No. of Pages
15
Main Subjects
Abstract EN
Free trade increases overall world production of goods and services and is a positive sum game in which all participating countries realize economic gains, a fact which is suggested in the theory of comparative advantage.
Vast literature also uses cross-country regressions to search for empirical linkages between trade and income.
However, research within the Gulf Cooperation Council (GCC) context remains limited; this study is an attempt to fill this gap by determining the correlation between trade freedom and GDP per capita for the six GCC countries over a period of 13 years (1999-2012).
The evaluation of data from the GCC countries in this study demonstrates a strong correlation between KSA and UAE’s level of trade freedom (according to its Trade Freedom Index) and its GDP per capita.
Exceptions to this trend taking into consideration the different sizes (economically and population) are Kuwait, Bahrain, Oman, and Qatar, as these countries have experienced different economic systems and trade barriers.
A cross- section regression model concludes that the convergence hypothesis is supported and their unique economic and repression tends to constrain the trade liberalization index influence on the economic growth.
One unit change in FTI leads on average to 0.22 point change in GDP per Capita rates on average, ceteris paribus.
It can be concluded that, the GDP per capita in the country is mainly driven by greater trade liberalization.
American Psychological Association (APA)
al-Sharif, Suad Muhammad. 2015. The impact of free trade on GDP per capita : the GCC perspective. University of Sharjah Journal for Humanities and Social Sciences،Vol. 12, no. 2, pp.21-35.
https://search.emarefa.net/detail/BIM-701909
Modern Language Association (MLA)
al-Sharif, Suad Muhammad. The impact of free trade on GDP per capita : the GCC perspective. University of Sharjah Journal for Humanities and Social Sciences Vol. 12, no. 2 (Dec. 2015), pp.21-35.
https://search.emarefa.net/detail/BIM-701909
American Medical Association (AMA)
al-Sharif, Suad Muhammad. The impact of free trade on GDP per capita : the GCC perspective. University of Sharjah Journal for Humanities and Social Sciences. 2015. Vol. 12, no. 2, pp.21-35.
https://search.emarefa.net/detail/BIM-701909
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 34
Record ID
BIM-701909