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

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Listed:
  • 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.

Suggested Citation

  • Carrere, Celine & Gourdon, Julien & Olarreaga, Marcelo, 2012. "Regional integration and natural resources : who benefits ? evidence from MENA," Policy Research Working Paper Series 5970, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5970
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    4. Schiff, Maurice & Winters, L Alan, 1998. "Regional Integration as Diplomacy," The World Bank Economic Review, World Bank, vol. 12(2), pages 271-295, May.
    5. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    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.
    7. 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.
    8. Richard Pomfret, 1997. "The economic cooperation organization: Current status and future prospects," Europe-Asia Studies, Taylor & Francis Journals, vol. 49(4), pages 657-667.
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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 18:23:40
    2. Regional integration and natural resources : who benefits ? evidence from MENA
      by aamighini in NEP-INT blog on 2012-02-22 18:23:40

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    Cited by:

    1. Saud, Shah & Haseeb, Abdul & Zafar, Muhammad Wasif & Li, Huiyun, 2023. "Articulating natural resource abundance, economic complexity, education and environmental sustainability in MENA countries: Evidence from advanced panel estimation," Resources Policy, Elsevier, vol. 80(C).
    2. Jošić Hrvoje & Žmuk Berislav & Dumičić Ksenija, 2019. "Measurement of Export Market Concentration for the Largest European Economic Integrations," Business Systems Research, Sciendo, vol. 10(2), pages 61-72, September.
    3. Nahmadova, Firuza, 2021. "Azerbaijan's integration in the BRI Middle Corridor: Is WTO accession needed," MPRA Paper 110331, University Library of Munich, Germany.

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    More about this item

    Keywords

    Free Trade; Trade Law; Trade Policy; Economic Theory&Research; Trade and Regional Integration;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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