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Abstract

The objective of this research is to investigate the potentials trade of dairy products between origin countries including selected EU countries and the U.S. on one hand, and Gulf Cooperation Council (GCC) countries, on the other hand. Results showed that when destination country’s real GDP increases by 1% value of dairy products exports increases by 0.28%. The model also showed that when destination country’s population increases by 1% dairy products exports increase by 0.32 %. Further, the gravity model is found to be sensitive to the set of selected independent variables.

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