Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Middle East Economics and Finance

Ed. by Dibeh, Ghassan / Assaf, Ata / Cobham, David / Hakimian, Hassan / Henry, Clement M.

Online
ISSN
1475-3693
See all formats and pricing
More options …

Analysis of Food Imports in a Highly Import Dependent Economy

Simeon Kaitibie
  • Corresponding author
  • Department of Finance and Economics, College of Business and Economics, Qatar University, P.O. Box 2713, Doha, Qatar
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Munshi Masudul Haq
  • Department of Finance and Economics, College of Business and Economics, Qatar University, P.O. Box 2713, Doha, Qatar
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Manitra A. Rakotoarisoa
  • Trade and Markets Division Economic and Social Development Department, Food and Agriculture Organization of the United Nations Room D-835 Viale delle Terme di Caracalla-00153, Rome, Italy
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2017-09-13 | DOI: https://doi.org/10.1515/rmeef-2016-0033

Abstract

This analysis of food imports used an enhanced gravity model of trade, with food imports from approximately 136 countries from 2004 to 2014. Using improved panel data techniques, we show that total income, inflation in the food exporting country, corruption perception in the food exporting country, trade openness in the food exporting economy, GCC membership are important determinants of food imports by Qatar. In addition, we show that Qatari food imports mostly originate in countries with, on average, similar economic sizes. Finally, Qatar’s factor endowment is dissimilar to those of most of its trading partners, a situation that potentially fosters international food trade in accordance with the Heckscher–Ohlin theory of trade.

Keywords: determinants of trade; food imports; gravity model; food security; Qatar

JEL Classification: F14; Q18; O5

References

  • Anderson, J.E. 1979. “A Theoretical Foundation for the Gravity Equation.” American Economic Review 69: 106–116.Google Scholar

  • Anderson, J.E., and E. Van Wincoop. (2001).NBER Working Paper no. 8079 Gravity with Gravitas: A Solution to the Border Puzzle.Google Scholar

  • Bergstrand, J.H. 1985. “The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence.” The Review of Economics and Statistics 67: 474–481.CrossrefGoogle Scholar

  • Boughanmi, H., J. Al Shidhani, M. Mbaga, and H. Kotagama. 2010. “The Effects of Regional Trade Arrangements on Agri-Food Trade: An Application of the Gravity Modeling Approach to the Arab Gulf Cooperation Council (GCC) Countries.” Review of Middle East Economics and Finance 5 (3): 46–62.Google Scholar

  • Brun, J.-F., C. Carrier, P. Guillaumont, and J. De Melo. 2005. “Has Distance Died? Evidence from a Panel Gravity Model.” The World Bank Economic Review 19: 99–120.CrossrefGoogle Scholar

  • Cain, M., and K.S. Al-Badri. 1989. “An Assessment of the Trade and Restructuring Effects of the Gulf Co-Operation Council.” International Journal of Middle East Studies 21: 57–69.CrossrefGoogle Scholar

  • Darku, A.B. 2009. “The Gravity Model and the Test for Regional Integration Effect: The Case of Tanzania.” The Journal of Developing Areas 43: 25–44.CrossrefGoogle Scholar

  • Disdier, A.-C., and K. Head. 2008. “The Puzzling Persistence of the Distance Effect on Bilateral Trade.” The Review of Economics and Statistics 90: 37–48.CrossrefGoogle Scholar

  • Dunlevy, J.A. 2006. “The Influence of Corruption and Language on the Protrade Effect of Immigrants: Evidence from the American States.” The Review of Economics and Statistics 88 (1): 182–186.Google Scholar

  • Dutt, P., and D. Traca. 2010. “Corruption and Bilateral Trade Flows: Extortion or Evasion?” The Review of Economics and Statistics 92 (4): 843–860.CrossrefGoogle Scholar

  • Egger, P., and M. Pfaffermayr. 2003. “Distance, Trade and FDI: A Hausman-Taylor SUR Approach.” Journal of Applied Econometrics 19 (2): 227–246.Google Scholar

  • Feenstra, R.C., and A.M. Taylor. 2012. International Economics. New York: Worth.Google Scholar

  • Fratianni, M., and H. Kang. 2006. “Heterogeneous Distance-Elasticities in Trade Gravity Models.” Economics Letters 90: 68–71.CrossrefGoogle Scholar

  • Grant, J.H., and D.M. Lambert. 2008. “Do Regional Trade Agreements Increase Members’ Agricultural Trade?” American Journal of Agricultural Economics 90: 765–782.CrossrefWeb of ScienceGoogle Scholar

  • Harrigan, J. 2002. “Specialization and the Volume of Trade: Do the Data Obey the Laws?.”. In Choi, K., and J. Harrigan (Eds.) Handbook of International Trade. London: Basil Blackwell.Google Scholar

  • Hausman, J.A., and W.E. Taylor. 1981. “Panel Data and Unobservable Individual Effect.” Econometrica 49: 1377–1398.CrossrefGoogle Scholar

  • Helpman, E. 1987. “Imperfect Competition and International Trade: Evidence from Fourteen Industrialized Countries.” Journal of the Japanese and International Economies 1: 62–81.CrossrefGoogle Scholar

  • International Monetary Fund. International Financial Statistics 2015. 2015. Retrieved April 20 2015. http://elibrary-data.imf.org/finddatareports.aspx?d=33061ande=169393.Google Scholar

  • Jayasinghe, S., and R. Sarker. 2008. “Effects of Regional Trade Agreements on Trade in Agrifood Products: Evidence from Gravity Modeling Using Disaggregated Data.” Review of Agricultural Economics 30: 61–81.CrossrefWeb of ScienceGoogle Scholar

  • Kabir, M., and R. Salim. 2010. “Can Gravity Model Explain BIMSTEC’s Trade?” Journal of Economic Integration 25: 143–165.Google Scholar

  • Kaitibie, S., and M.A. Rakotoarisoa. 2017. “Determinants of Intra-GCC Food Trade.” The International Trade Journal 31 (3): 272–293.10.1080/08853908.2017.1288182.CrossrefGoogle Scholar

  • Lambert, D., and S. McKoy. 2009. “Trade Creation and Diversion Effects of Preferential Trade Associations on Agricultural and Food Trade.” Journal of Agricultural Economics 60: 17–39.Web of ScienceCrossrefGoogle Scholar

  • Maddala, G.S. 2001. Introduction to Econometrics. New York: John Wiley and Sons.Google Scholar

  • Ministry of Development Planning and Statistics. 2014. Qatar Economic Outlook 2014–2015 Doha, Qatar:Ministry of Development Planning and Statistics.Google Scholar

  • Prentice, B.E., Z. Wang, and H.J. Urbina. 1998. “Derived Demand for Refrigerated Truck Transport: A Gravity Model Analysis of Canadian Pork Exports to the United States.” Canadian Journal of Agricultural Economics 46: 317–328.CrossrefGoogle Scholar

  • Qatar National Food Security Programme (QNFSP). 2013. The National Food Security Plan Doha, Qatar:QNFSPGoogle Scholar

  • Qatar Statistics Authority (QSA). 2015. Qatar Food Imports, 2004–2014. Accessed from http://www.qix.gov.qa/portal/page/portal/qix/subject_area?subject_area=332.Google Scholar

  • Rose, A.K. 2004. “Do We Really Know that the WTO Increases Trade?” The American Economic Review 94: 98–114.CrossrefGoogle Scholar

  • Serlenga, L., and Y. Shin. 2007. “Gravity Models of Intra-EU Trade: Application of the CCEP-HT Estimation in Heterogeneous Panels with Unobserved Common Time-Specific Factors.” Journal of Applied Econometrics 22: 361–381.Web of ScienceCrossrefGoogle Scholar

  • World Bank. 2015. World Development Indicators. World Bank. Accessed June 18 2015. http://databank.worldbank.org/data//reports.aspx?source=2andcountry=QATandseries=andperiod=.Google Scholar

About the article

Published Online: 2017-09-13


Citation Information: Review of Middle East Economics and Finance, Volume 13, Issue 2, 20160033, ISSN (Online) 1475-3693, DOI: https://doi.org/10.1515/rmeef-2016-0033.

Export Citation

© 2017 Walter de Gruyter GmbH, Berlin/Boston.Get Permission

Comments (0)

Please log in or register to comment.
Log in