“Sustainable intra GCC trade-too little to analyse or are we missing somethings?”, Subhadra Ganguli
SUBHADRA GANGULI, Department of Accounting and Economics, College of Business and Finance, Ahlia University Manama, Kingdom of Bahrain
Purpose: This paper analyses trade patterns between Gulf Corporation Council (GCC) states, and diversification within these in order to explore the success of a potential single currency union.
Design/Methodology/Approach: This empirical research quantitatively analyses patterns of merchandise trade between the GCC states during 2005–15, with specific focus on concentration, diversification and
similarity of trade (export and import) as well diversification within GCC economies.
Findings: The paper concludes that while Bahrain exports show dissimilarity when compared with other GCC states, its imports appear very similar. The other five GCC states show similarity among themselves in
both exports and imports. Diversification can help in sustainable trade between GCC states in the medium to long-term.
Originality/Value: The results of the paper will be of value to GCC policymakers to provide a clear rationale for boosting trade and diversification with the long-term goal of a single currency economic union.
Keywords: GCC; Optimum Currency Area (OCA); international trade; concentration; diversification; similarity; index; sustainability