Global Iron Ore Export - International Business Management
Global Iron Ore Export - International Business Management ABSTRACT An empirical model of global iron ore commerce is constructed and used in this research. The empirical specification is based on the trade gravitation hypothesis, which states that commerce is driven by the income of the trading nations, the distance between them, and other country characteristics. The model is designed to account for country-specific impacts. Panel data for worldwide bilateral iron ore trade flows from 1980 to 2016 are used in the estimate, which includes 121 countries and almost 14,000 observations. The findings show that the gravity model assumptions are well supported. The trade value is expected to rise by 5% each year on average through 2035. The annual trading potential of iron ore is projected to be 410 million USD. When applied to forecasting and policy analysis, the findings offer another another valuable source of information, giving a different perspective on the global iron ore trade ...