Yu Hong
College of International Economics and Trade, Jilin University of Finance and Economics, Changchun, 130117, People`s Republic of China
Zhen Song
College of International Economics and Trade, Jilin University of Finance and Economics, Changchun, 130117, People`s Republic of China
Hui-Ai Yuan
College of International Economics and Trade, Jilin University of Finance and Economics, Changchun, 130117, People`s Republic of China
Hongwei Su
College of Humanities and Sciences, Northeast Normal University, Changchun, 130117, People `s Republic of China
ABSTRACT
Geographical diversification of petroleum imports can be an effective strategy to energy risk avoidance and energy security. In the previous studies which employ Herfindahl-Hirschmann index to measure the degree of dispersion, the absence of the consideration of the common trend may conceal important information about the individual features. This study proposes an applicable approach to measuring the geographical dispersion of world petroleum trade which is furthermore used as a benchmark to adjust Herfindahl-Hirschmann index of an individual country. The adjusted indicator well reflects the distinctive dynamics of an individual in relation to the world benchmark. Using annual data of three petroleum products ranging from 1976-2011, this study applied the proposed method to Chinese and Japanese petroleum imports. Empirical results show that by removing the world common trend, the time paths of the adjusted indicators can tell different but interesting stories.
PDF References Citation
How to cite this article
Yu Hong, Zhen Song, Hui-Ai Yuan and Hongwei Su, 2013. Adjusting the Geographical Dispersion of Petroleum Trade with World Averages: An Application to China and Japan Using Annual Trade Data. Journal of Applied Sciences, 13: 4034-4039.
DOI: 10.3923/jas.2013.4034.4039
URL: https://scialert.net/abstract/?doi=jas.2013.4034.4039
DOI: 10.3923/jas.2013.4034.4039
URL: https://scialert.net/abstract/?doi=jas.2013.4034.4039
REFERENCES
- Chuang, M.C. and H.W. Ma, 2013. Energy security and improvements in the function of diversity indices-Taiwan energy supply structure case study. Renewable Sustainable Energy Rev., 24: 9-20.
CrossRef - Ge, F. and Y. Fan, 2013. Quantifying the risk to crude oil imports in China: An improved portfolio approach. Energy Econ., 40: 72-80.
CrossRef - Hong, Y. and H. Su, 2010. Can energy price shocks drive long-run technological progress and growth?: Empirical evidence from Korea. Proceedings of the IEEE International Conference on Advanced Management Science, Volume 3, July 9-11, 2010, Chengdu, pp: 656-660.
CrossRef - Hong, Y. and H. Su, 2012. Energy cost, energy risk and Japanese technical changes. AASRI Procedia, 2: 20-24.
CrossRefDirect Link - Hong, Y., J. Guan and H. Su, 2013. Does energy constraint facilitate the Japanese technical change? Adv. Mater. Res., 664: 1166-1170.
CrossRefDirect Link - Ma, P., H. Jiang and Y. Hong, 2013. Geographic concentration of Korean oil imports and the implications. Adv. Mater. Res., 608-609: 1506-1510.
CrossRefDirect Link - Vivoda, V., 2009. Diversification of oil import sources and energy security: A key strategy or an elusive objective? Energy Policy, 37: 4615-4623.
CrossRef - Wabiri, N. and H. Amusa, 2010. Quantifying south Africa's crude oil import risk: A multi-criteria portfolio model. J. Econ. Mod., 27: 445-453.
Direct Link - Wu, G., L.C. Liu and Y.M. Wei, 2009. Comparison of China's oil import risk: Results based on portfolio theory and a diversification index approach. Energy Policy, 37: 3557-3565.
CrossRef