Structure of the Norwegian imports trade concentration : the seemingly unrelated autoregressive regression modelling approach

Abstract

Purpose: This article is proposed to analyse the structure of the trade concentration index (HHI) of Norwegian imports across continents. Design/ Methodology/ Approach: The paper analyse the concentration index (HHI) by fitting a seemingly unrelated (SUR) regression model using exogenous variables of revenue collected from export and number of Norwegian export countries. Findings: The results suggest that the structure of the concentration index (HHI) Norwegian imports show different feature across continents. The estimation result predicts that the Norwegian import: from the continent of Africa is increasing in the extensive margin, from the continent of Asia and Oceania is increasing in the intensive margin, from the continent of Europe is increasing in both the extensive and the intensive margin, from the continent of North and Central America shows stagnation for both the extensive and the intensive margin, and from the continent of South America is increasing in the intensive margin. Research implications: The overall econometric analysis suggested that the Norwegian bilateral trade with European countries benefits Norway. Originality/ Value: The methodological approach employed in this study is unique and new to analyse trade concentration index (HHI). Keywords: Trade Concentration Index (HHI), determinants of HHI, SUR models and Norway