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Regional Integration and Natural Resources: who benefits? Evidence from MENA

Author

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  • Céline Carrère
  • Julien Gourdon
  • Marcelo Olarreaga

Abstract

This paper is built on Venables (2011) theoretical predictions which show that gains from regional integration are unevenly distributed between resource rich and poor countries. We explore the effects of different integration schemes inMiddle East and North Africa. Results suggest that within Pan Arab Free Trade Agreement (PAFTA), 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 benefits of unevenly distributed resource wealth among the region’s economies.

Suggested Citation

  • Céline Carrère & Julien Gourdon & Marcelo Olarreaga, 2012. "Regional Integration and Natural Resources: who benefits? Evidence from MENA," International Economics, CEPII research center, issue 131, pages 23-41.
    • Handle: RePEc:cii:cepiie:2012-q3-131-2
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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. 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.
    2. 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).
    3. Nahmadova, Firuza, 2021. "Azerbaijan's integration in the BRI Middle Corridor: Is WTO accession needed," MPRA Paper 110331, University Library of Munich, Germany.
    4. Naima Sadaoui & Lotfi Zabat & Habib Sekrafi & Mehdi Abid, 2024. "The moderating role of natural resources between governance and CO2 emissions: Evidence from MENA countries," Energy & Environment, , vol. 35(3), pages 1597-1615, May.

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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