Estimating the trade potential of ceramic and glass products in Iran and CIS(Based on the gravity model)

To Estimate the value of trade between countries, a differential gravity model of bilateral trade flows was formulated and estimated with panel data from 2009 to 2019 for each of the commodity groups HS68 (ceramic products, glass and glass products), HS69 (ceramic products) as well as HS70 (glass and glass products). The parameters were estimated with a large database using ordinary least squares, fixed-effects and random-effects methods. For the three commodity groups, the results were stable across methods. For HS68, exports were elastic with respect to the gross domestic product (GDP) of exporters and importers GDP. For HS69, exports were inelastic with respect to the exporters GDP and elastic with respect to importers GDP. Exports of HS70 were inelastic with the exporters GDP and elastic with respect to the importers. Results show that geographical distance and trade imbalance is negative and significant; trade increases if thetransportation costs decrease. We also introduce the economic dimension and income per-capita; these proxies confirm the positive effects in bilateral trade. To Estimate the value of trade between countries, a differential gravity model of bilateral trade flows was formulated and estimated with panel data from 2009 to 2019 for each of the commodity groups HS68 (ceramic products, glass and glass products), HS69 (ceramic products) as well as HS70 (glass and glass products). The parameters were estimated with a large database using ordinary least squares, fixed-effects and random-effects methods. For the three commodity groups, the results were stable across methods. For HS68, exports were elastic with respect to the gross domestic product (GDP) of exporters and importers GDP. For HS69, exports were inelastic with respect to the exporters GDP and elastic with respect to importers GDP. Exports of HS70 were inelastic with the exporters GDP and elastic with respect to the importers. Results show that geographical distance and trade imbalance is negative and significant; trade increases if thetransportation costs decrease. We also introduce the economic dimension and income per-capita; these proxies confirm the positive effects in bilateral trade.To Estimate the value of trade between countries, a differential gravity model of bilateral trade flows was formulated and estimated with panel data from 2009 to 2019 for each of the commodity groups HS68 (ceramic products, glass and glass products), HS69 (ceramic products) as well as HS70 (glass and glass products). The parameters were estimated with a large database using ordinary least squares, fixed-effects and random-effects methods. For the three commodity groups, the results were stable across methods. For HS68, exports were elastic with respect to the gross domestic product (GDP) of exporters and importers GDP. For HS69, exports were inelastic with respect to the exporters GDP and elastic with respect to importers GDP. Exports of HS70 were inelastic with the exporters GDP and elastic with respect to the importers. Results show that geographical distance and trade imbalance is negative and significant; trade increases if thetransportation costs decrease. We also introduce the economic dimension and income per-capita; these proxies confirm the positive effects in bilateral trade.To Estimate the value of trade between countries, a differential gravity model of bilateral trade flows was formulated and estimated with panel data from 2009 to 2019 for each of the commodity groups HS68 (ceramic products, glass and glass products), HS69 (ceramic products) as well as HS70 (glass and glass products). The parameters were estimated with a large database using ordinary least squares, fixed-effects and random-effects methods. For the three commodity groups, the results were stable across methods. For HS68, exports were elastic with respect to the gross domestic product (GDP) of exporters and importers GDP. For HS69, exports were inelastic with respect to the exporters GDP and elastic with respect to importers GDP. Exports of HS70 were inelastic with the exporters GDP and elastic with respect to the importers. Results show that geographical distance and trade imbalance is negative and significant; trade increases if thetransportation costs decrease. We also introduce the economic dimension and income per-capita; these proxies confirm the positive effects in bilateral trade.To Estimate the value of trade between countries, a differential gravity model of bilateral trade flows was formulated and estimated with panel data from 2009 to 2019 for each of the commodity groups HS68 (ceramic products, glass and glass products), HS69 (ceramic products) as well as HS70 (glass and glass products). The parameters were estimated with a large database using ordinary least squares, fixed-effects and random-effects methods. For the three commodity groups, the results were stable across methods. For HS68, exports were elastic with respect to the gross domestic product (GDP) of exporters and importers GDP. For HS69, exports were inelastic with respect to the exporters GDP and elastic with respect to importers GDP. Exports of HS70 were inelastic with the exporters GDP and elastic with respect to the importers. Results show that geographical distance and trade imbalance is negative and significant; trade increases if thetransportation costs decrease. We also introduce the economic dimension and income per-capita; these proxies confirm the positive effects in bilateral trade.