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Reaping the Benefits of Deeper Euro-Med Integration Through Trade Facilitation

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  • Bourdet, Yves

    ()
    (Department of Economics, Lund University)

  • Persson, Maria

    ()
    (Department of Economics, Lund University)

Abstract

The current political turmoil in the Arab world has contributed to renewed interest in the Barcelona Process and how it can be improved in order to promote inclusive growth in the non-EU Mediterranean countries. In this paper, we explore whether deeper integration in the form of trade facilitation – i.e. improved and simplified trade procedures – could be an important part of a reform agenda. Adopting a Southern perspective by focusing on exports from non-EU Mediterranean countries to the EU, we use data from the World Bank’s Doing Business Database on the efficiency of trade procedures to formally test whether the efficiency of trade procedures affects (i) bilateral volumes of exports, and (ii) the number of products that are exported. We find that improving export and import procedures to the best practice levels (for each group of countries) is likely to increase the value of non-EU Mediterranean exports by 34% and to increase the number of products exported by non-EU Mediterranean countries by 21%. A main implication of the results is therefore that more efforts should to be devoted to trade facilitation in order to reap the benefits of deeper integration between the two groups of countries.

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Bibliographic Info

Paper provided by Lund University, Department of Economics in its series Working Papers with number 2011:15.

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Length: 31 pages
Date of creation: 28 Apr 2011
Date of revision:
Handle: RePEc:hhs:lunewp:2011_015

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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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Keywords: Barcelona Process; Mediterranean Union; European Union; Deeper Integration; Trade Facilitation; Export volumes; Export Diversification;

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References

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  1. Alberto Amurgo Pacheco, 2006. "Preferential Trade Liberalization and the Range of Exported Products: The Case of the Euro-Mediterranean FTA," IHEID Working Papers 18-2006, Economics Section, The Graduate Institute of International Studies.
  2. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
  3. Alberto Amurgo-Pacheco, Martha Denisse Pierola, 2007. "Patterns of export diversification in developing countries: intensive and extensive margins," IHEID Working Papers 20-2007, Economics Section, The Graduate Institute of International Studies, revised Jul 2007.
  4. Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics 3744, London School of Economics and Political Science, LSE Library.
  5. Persson, Maria, 2010. "Trade Facilitation and the Extensive Margin," Working Paper Series 828, Research Institute of Industrial Economics.
  6. Peridy, Nicolas, 2005. "The trade effects of the Euro-Mediterranean partnership: what are the lessons for ASEAN countries?," Journal of Asian Economics, Elsevier, vol. 16(1), pages 125-139, February.
  7. Inmaculada Martínez-Zarzoso & Laura Márquez-Ramos, 2007. "The Effect of Trade Facilitation on Sectoral Trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 167, Ibero-America Institute for Economic Research.
  8. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
  9. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing the Benefits of Trade Facilitation: A Global Perspective," The World Economy, Wiley Blackwell, vol. 28(6), pages 841-871, 06.
  10. Bensassi, Sami & Márquez-Ramos, Laura & Martínez-Zarzoso, Inmaculada, 2010. "Economic integration and the two margins of trade: the impact of the Barcelona Process on North African countries’ exports," MPRA Paper 27117, University Library of Munich, Germany.
  11. Burger, M.J. & van Oort, F.G. & Linders, G.J.M., 2009. "On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-Inflated Estimation," ERIM Report Series Research in Management ERS-2009-003-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  12. Richard Newfarmer & William Shaw & Peter Walkenhorst, 2009. "Breaking Into New Markets," World Bank Publications, The World Bank, number 2616, October.
  13. Persson, Maria, 2008. "Trade Facilitation and the EU-ACP Economic Partnership Agreements," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 518-546.
  14. Bourdet, Yves & Persson, Maria, 2010. "Completing the EU Customs Union. The Effects of Trade Procedure Harmonization," Working Papers 2010:7, Lund University, Department of Economics.
  15. Hoekman, Bernard & Sekkat, Khalid, 2010. "Arab Economic Integration: Missing links," CEPR Discussion Papers 7807, C.E.P.R. Discussion Papers.
  16. Persson, Maria & Wilhelmsson, Fredrik, 2006. "Assessing the Effects of EU Trade Preferences for Developing Countries," Working Papers 2006:4, Lund University, Department of Economics, revised 26 Jun 2006.
  17. Hildegunn Kyvik Nordås & Enrico Pinali & Massimo Geloso Grosso, 2006. "Logistics and Time as a Trade Barrier," OECD Trade Policy Papers 35, OECD Publishing.
  18. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2003. "Trade Facilitation and Economic Development: A New Approach to Quantifying the Impact," World Bank Economic Review, World Bank Group, vol. 17(3), pages 367-389, December.
  19. Hongshik Lee & Innwon Park, 2007. "In Search of Optimised Regional Trade Agreements and Applications to East Asia," The World Economy, Wiley Blackwell, vol. 30(5), pages 783-806, 05.
  20. Jose R. Lopez-Calix & Peter Walkenhorst & Ndiame Diop, 2010. "Trade Competitiveness of the Middle East and North Africa : Policies for Export Diversification," World Bank Publications, The World Bank, number 2466, October.
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Citations

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Cited by:
  1. Jean-Pierre Chauffour & Bernard M., 2013. "Harnessing Trade Opportunities in the Middle East and North Africa," RSCAS Working Papers PP2013/07, European University Institute.
  2. Thorvaldur Gylfason & Inmaculada Martínez-Zarzoso & Per Magnus Wijkman, 2012. "How Free Trade Can Help Convert the 'Arab Spring' into Permanent Peace and Democracy," CESifo Working Paper Series 3882, CESifo Group Munich.
  3. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(17), pages 1-33.

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