9 9 International Journal of Scientific Management and Development Correspondent author: Mohammadreza Monjazeb Manuscript No: IJSMD-KINA-2013-016 International Journal of Scientific Management and Development ISSN:2345-3974 Vol.3 (1), 9-13, December (2013) Review Paper Estimation of Non-oil Export Function of OPEC Countries, Using Panel Data Parichehr Nasiri 1 , Mohammadreza Monjazeb 2 1 Department of Economics, Qazvin Branch, Islamic Azad 2 Faculty member, Faculty of Engineering Economics, University of Economic Science, Tehran, Iran Available online at: www.IJSMD.Com Received 25th Nov 2013, revised 1th Dec 2013, accepted 10th Dec 2013 Abstract: The aim of this investigation is to check, discover, and compare the relationship between non-oil export and real currency rate, Gross Domestic Product (GDP), domestic price level, foreigners’ income, priory export, and economic growth in OPEC countries si nce 1975 to 2012. The data of this study includes oil producing countries such as Islamic Republic of Iran, Saudi Arabia, UAE, Kuwait, Qatar, Venezuela, Nigeria, Libya, and Ecuador. The analyses are presented as panel data in Eviews software, and the tableau data are used in estimating the model. Through our results, we found that there is a positive and significant relation between non-oil export and foreigners’ income, and also a negative relation between non -oil export and domestic price, and inverse of real exchange rate. Keywords: panel data, non-oil export, linear model, Islamic Republic of Iran I. INTRODUCTION Export boom is one of the factors in achieving sustainable economic growth and development which constitutes the main end of foreign trade policy. In Iranian economy, because of the importance of the role of non-oil export in reducing the dependency to oil income, and also its position in the country’s economic growth, consideration of the effective factors on non- oil export and finding the required methods of developing it is especially important. Therefore, exchange rate control as one of the determinant factors in non-oil export to boom the non-oil export, is taken into account as a major step on the way of economic growth and development of the country. The evidences and information show that whenever the income of oil export is risen, the attention to non-oil exports is lessened. Perhaps the main reason for authority’s inattention to non-oil export lies on the fact that they have been interested only in oil exchange income, not to the impact of non-oil export, especially industrial goods on the economic structures. II. REVIEW OF LITERATURES Emmanuel S. Akpan, Hodo B. Riman, Joe Duke II, Helen Walter Mboto (2012) have considered the industrial production and non- oil export, and assessed the long-run implication for economic growth in Nigeria since 1970 to 2007. The purpose of this study is to identify the role of industrial sector in driving the GDP of Nigeria. This investigation presents some studies related to prediction of long-run behavioral relationship between non-oil exports, industrial productions, and economic growth in Nigeria. In the work, the Vector Error Correction Mechanism (VECM) is used to establish the relationship between GDP, industrial production, and non-oil exports. The study reveals the existence of a positive and uni-directional relationship that runs from industrial production to non-oil exports. Further evidences of the paper show that the current policies on industrial production in Nigeria, do not lead to non-oil exports. Jahanzaib Haider, Muhammad Afzal, and Farah Riaz (2011) has estimated the import and export demand functions of Pakistan using bilateral trade data. In this study flexibility of trade export and import of Pakistan is considered by traditional trade models to show the mobility of Pakistan trade since 1973 to 2008. The results show that Pakistan must enhance trade with Asian countries China and India in order to keep trading via traditional methods, and to access the larger markets of the USA and UAE, since both countries have a fast economic growth and big markets. Sharma (2003) has investigated the determinant factor of India’s exports. The paper is performed by using annual statistic of interval 1970-1998, and using the simultaneous equations. The results showed that price increase impacts inversely on India’s export performance, and export supply with the export amount of goldfish of foreign direct investment does not statistically affect on the export performance, even if the index of this variable is obtained to be positive. C. Yom (2006) has investigated on the export performance of America, and export performance of developed countries, using the tableau data of 120 developed countries between 1965-1990. The author concludes that the overall export performance of America, have a significant and positive impact on the export of beneficiary sectors and manufacturing groups in America. On the other hand, the need to understand the relation between receiving state funds can help improving America's export performance, since it has had a great impact on exports.