Economic integration and the two margins of trade: the impact of the Barcelona Process on North African countries’ exports
AbstractAccording to recently developed models of trade with imperfect competition and heterogeneous firms, lower trade costs increase bilateral trade not only through a rise in the mean value of individual shipments (the intensive margin of trade), but also through an increase in the number of exporting firms (the extensive margin of trade). The main aim of this paper is to provide new empirical evidence of the effects of the Euro-Mediterranean (EuroMed) agreements on both margins of trade. Using highly disaggregated export data for four North African countries (Algeria, Egypt, Morocco and Tunisia) and two Middle East countries (Jordan, Lebanon) over the period from 1995 to 2008, we estimate the impact of the EuroMed agreements on both trade margins and we provide empirical evidence of the validity of the theoretical predictions. Results indicate that only the North African countries enjoyed a positive and significant effect of the Barcelona process on their exports to the four biggest countries in the European Union.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27117.
Date of creation: 2010
Date of revision:
Euro-Mediterranean agreements; trade integration; intensive and extensive margins.;
Other versions of this item:
- Sami Bensassi & Laura M�rquez-Ramos & Inmaculada Mart�nez-Zarzoso, 2012. "Economic Integration and the Two Margins of Trade: The Impact of the Barcelona Process on North African Countries' Exports," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(2), pages 228-265, March.
- F10 - International Economics - - Trade - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-18 (All new papers)
- NEP-ARA-2010-12-18 (MENA - Middle East & North Africa)
- NEP-CWA-2010-12-18 (Central & Western Asia)
- NEP-INT-2010-12-18 (International Trade)
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