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Regional integration and natural resources : who benefits ? evidence from MENA

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  • Carrere, Celine
  • Gourdon, Julien
  • Olarreaga, Marcelo

Abstract

This paper builds on theoretical predictions that show that gains from regional integration are unevenly distributed between resource rich and poor countries. It explores the effects of different integration schemes in the Middle East and North Africa. The results suggest that within the Pan Arab Free Trade Agreement, there is significant trade creation for resource poor countries associated with regional integration, and no evidence of trade diversion. In resource rich countries, however, there is evidence of pure trade diversion in both resource-rich/labor-abundant countries and resource-rich/labor-importing countries. This underscores the idea that regional integration can help to spread the benefits of unevenly distributed resource wealth among the region's economies.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5970.

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Date of creation: 01 Feb 2012
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Handle: RePEc:wbk:wbrwps:5970

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Related research

Keywords: Free Trade; Trade Law; Trade Policy; Economic Theory&Research; Trade and Regional Integration;

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  1. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2011. "Export Diversification: What's behind the Hump?," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 590-605, May.
  2. Wacziarg, Romain & Imbs, Jean, 2000. "Stages of Diversification," Research Papers 1653, Stanford University, Graduate School of Business.
  3. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  4. Hoekman, Bernard & Zarrouk, Jamel, 2009. "Changes in cross-border trade costs in the Pan-Arab free trade area, 2001-2008," Policy Research Working Paper Series 5031, The World Bank.
  5. Péridy, Nicolas & Abedini, Javad, 2008. "The Greater Arab Free Trade Area(GAFTA): an Estimation of Its Trade Effects," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 848-872.
  6. Carrere, Celine, 2006. "Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model," European Economic Review, Elsevier, vol. 50(2), pages 223-247, February.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Regional integration and natural resources : who benefits ? evidence from MENA
    by aamighini in NEP-INT blog on 2012-02-22 12:23:40
  2. Regional integration and natural resources : who benefits ? evidence from MENA
    by aamighini in NEP-INT blog on 2012-02-22 12:23:40

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