Trade Exchange of the Republic of Yemen with the GCC States and its Impact on Yemen’s Balance of Trade

Abstract

Assessment of the current status of Yemen's trade exchange with the GCC States and understanding the impact of such exchange on Yemen's balance of trade is significant in shaping the future policies of foreign trade between these countries and in  a way enhancing their role in the economy of Yemen.

This study discusses time series of the volume of exchange and the indicators of foreign trade between the Republic of Yemen and the GCC States during the period between 1999-2014. This paper also investigates the impact of this exchange on Yemen's balance of trade.

To achieve this objective, the study utilizes annual data for time series during the period between1999-2014. The study uses descriptive, analytical, and quantitative approaches in performing data characterization, analysis, and measurement of some indicators when computing the trend equation of time series for the most important variables associated with trade exchange in linear and semi-logarithmic line charts, and identifying instability factors of Foreign trade between the Republic of Yemen and the GCC States.