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Economic integration and the two margins of trade: the impact of the Barcelona Process on North African countries’ exports

Author

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  • Bensassi, Sami
  • Márquez-Ramos, Laura
  • Martínez-Zarzoso, Inmaculada

Abstract

According 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.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:27117
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    Cited by:

    1. Parra, María Dolores & Martínez-Zarzoso, Inmaculada, 2015. "Imported inputs and Egyptian exports: Exploring the links," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-31.
    2. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-33.
    3. Adriana Cardozo & Inmaculada Martínez‐Zarzoso & Paula L. Vogler, 2022. "The impact of free trade agreements on Middle East and North Africa exports of intermediate and final goods," The World Economy, Wiley Blackwell, vol. 45(5), pages 1501-1527, May.
    4. Luis Marcelo Florensa & Laura Márquez-Ramos & María Luisa Recalde & María Victoria Barone, 2014. "Does economic integration increase trade margins? Empirical evidence from LAIAs countries," Working Papers 2014/05, Economics Department, Universitat Jaume I, Castellón (Spain).
    5. Mathilde Maurel & Hugo Lapeyronie & Bogdan Meunier, 2016. "Impact of hard and soft infrastructure: Evidence from the EU partners, North Africa and CEECs," Working Papers hal-01396058, HAL.
    6. Bourdet, Yves & Persson, Maria, 2011. "Reaping the Benefits of Deeper Euro-Med Integration Through Trade Facilitation," Working Papers 2011:15, Lund University, Department of Economics.
    7. Ofei, Edmund Okraku, 2017. "Impact of PTA on Trade Margins of LDCs in Sub- Saharan Africa: Evidence from the EBA," MPRA Paper 86976, University Library of Munich, Germany.
    8. Laura Marquez-Ramos, 2016. "The Role of Institutional Environment in International Trade. The Case of Spanish Regions," REGION, European Regional Science Association, vol. 3, pages 125-140.
    9. Luis Florensa & Laura Márquez-Ramos & María Recalde, 2015. "The effect of economic integration and institutional quality of trade agreements on trade margins: evidence for Latin America," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 329-351, May.
    10. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.
    11. Serranito, Francisco, 2013. "Heterogeneous technology and the technological catching-up hypothesis: Theory and assessment in the case of MENA countries," Economic Modelling, Elsevier, vol. 30(C), pages 685-697.
    12. Leila Baghdadi & Inmaculada Martínez-Zarzoso & Celestino Suárez-Burguet & Habib Zitouna, 2012. "Is the road to regional integration paved with pollution convergence?," Working Papers 2012/03, Economics Department, Universitat Jaume I, Castellón (Spain).
    13. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.

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    More about this item

    Keywords

    Euro-Mediterranean agreements; trade integration; intensive and extensive margins.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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