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Merchandise trade of the unrecognized entities in West Asia. The gravity model of trade, including Abkhazia and South Ossetia Cover

Merchandise trade of the unrecognized entities in West Asia. The gravity model of trade, including Abkhazia and South Ossetia

International Journal of Management and Economics
Volume 59 (2023): Issue 1 (March 2023)
By:   
Open Access
|Mar 2023
Figures & tables

Figures & Tables

Figure 1

GDP in Abkhazia and South Ossetia, in 2015–2020 (in millions USD).Note: The exchange rates of Russian rubbles against US dollars were calculated based on World Bank [2022].Source: own elaboration based on Ugsra.org [2020]; Ugosstat.ru [2020].

Figure 2

Abkhazia's and South Ossetia's merchandise trade, in 2015–2020 (in million USD).Note: The latest available data concerning South Ossetia's trade come from 2016.Source: own elaboration based on Ugsra.org [2020]; Ugosstat.ru [2020].

Figure 3

Russia's trade with Abkhazia and South Ossetia, in 2015–2020 (in million USD).Source: own elaboration based on Ru-Stat [2022].

Figure 4

Main commodity groups traded between Russia and Abkhazia in 2015 and 2020 (in%).Source: own elaboration based on Ru-Stat [2022].

Figure 5

Main commodity groups traded between Russia and South Ossetia in 2015 and 2020 (in%).Source: own elaboration based on Ru-Stat [2022].

Dependent variables of the gravity model of trade

VariableDescription of the variableSource of the data
GDPGross domestic product which determines the size of the exporter and importer, measured in current prices, in USDWorld Bank; http://ugosstat.ru/statisticheskij-sbornik-za-2018-g/; http://ugosstat.ru/statisticheskij-sbornik-za-2018-g/
Distance (D)Determining the geographical distance between the capitals of a given pair of countries, measured in kilo meterCEPII; https://www.timeanddate.com/worldclock/distance.html
ContiguityDummy variable taking the value of 1 for the neighboring countries and 0 otherwiseGeographical atlas
Common languageDummy variable taking the value of 1, when the residents of both countries speak the same official language and 0 otherwiseDifferent sources (CEPII; https://www.ethnologue.com; https://abkhazworld.com/aw/abkhazia)
Colonial linkDummy variable taking the value of 1, when countries historically have trade relations or common statehood and 0 otherwiseDifferent sources (CEPII)
RTA/FTADummy variable taking the value of 1, when countries have signed a free or a regional trade agreement and 0 otherwiseDifferent sources (WTO)
Common currencyDummy variable taking the value of 1, when countries have the common value and 0 otherwiseDifferent sources (https://www.countries-ofthe-world.com/world-currencies.html; https://abkhazworld.com/aw/abkhazia)

Gravity model; the actual and potential structure of Georgia’s trade in 2017

Trading partnersActual exports (in millions USD)Actual imports (in millions USD)Potential exports (in millions USD)Potential exports divided by actual exportsActual share of the trading partner (%)Potential share of the trading partner (%)
Russia    396.672  786.867    499.8181.325.715.7
Turkey    216.6741,373.739    239.1871.114.1  7.5
Armenia    210.276    281.322    693.8423.313.621.7
Azerbaijan      272.15    567.034    298.0451.117.7  9.3
Iran      76.351    105.194      67.2380.9  5.0  2.1
Germany      45.657    434.153    216.8584.7  3.0  6.8
China    201.702    732.946      30.3330.213.1  0.9
USA    121.796    268.262      56.7830.5  7.9  1.8
Abkhazia--    304.980--  9.6
South Ossetia--    786.226--24.6
Total1,541.2784,549.5173,193. 3113.1100100

Gravity model; the actual and potential structure of South Ossetia’s trade in 2017

Trading partnersActual exports (in million USD)Actual imports (in million USD)Potential exports (in million USD)Potential exports divided by actual exportsActual share of the trading partner (%)Potential share of the trading partner (%)
Russia9.47030.422386.24640.810027.2
Turkey--  36.939--  2.6
Armenia--  60.817--  4.3
Azerbaijan--  29.496--  2.1
Iran--  21.807--  1.5
Germany--  55.105--  3.9
China--    5.896--  0.4
USA--  19.575--  1.4
Georgia--  677.388--47.8
Abkhazia--  124.991--  8.8
Total9.47030.422  1,418.2640.8100100

Gravity model; the actual and potential structure of Abkhazia’s trade in 2017

Trading partnersActual exports (in millions USD)Actual imports (in millions USD)Potential exports (in millions USD)Potential exports divided by actual exportsActual share of the trading partner (%)Potential share of the trading partner (%)
Russia53.371217.5501,061.29519.991.860.7
Turkey  4.740  12.270    64.79613.7  8.2  3.7
Armenia-1.616      48.291--  2.8
Azerbaijan--      28.653--  1.6
Iran--      24.959--  1.4
Germany--      77.343--  4.4
China-5.713        8.039--  0.5
USA--      28.113--  1.6
Georgia--    275.957--15.8
South Ossetia--    131.400--  7.5
Total  58.111237.1491,748.846  33.6100100
DOI: https://doi.org/10.2478/ijme-2022-0029 | Journal eISSN: 2543-5361 | Journal ISSN: 2299-9701
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Language: English
Page range: 57 - 69
Submitted on: May 18, 2022
Accepted on: Dec 14, 2022
Published on: Mar 31, 2023
Published by: Warsaw School of Economics
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year
Keywords:
unrecognized entities of West Asia,
Abkhazia,
South Ossetia,
economic and trade relations,
gravity model of trade
Related subjects:
Business and economics,
Political economics,
Economic theory, systems and structures,
Business management,
Management accounting, financial controlling, cost calculation, investment

© 2023 Magdalena Suska, published by Warsaw School of Economics
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 59 (2023): Issue 1 (March 2023)
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