Does Gravity Model Fit Sudan’s Trade Patterns?

Abstract

This paper explains bilateral trade patterns between Sudan and 16 Arab countries over the period 1990-2009 using augmented gravity model. The estimation results show that the gravity equation fits the data reasonably well. Estimates of population, GDPs of Arab countries and distance elasticities are as expected. The Heckscher-Ohlin theory explains inter-industry, instead of intra-industry, highlighting competitiveness rather than complementarity between Sudan and Arab countries.