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Economic Integration in MENA: The Global, Regional, and Subregional Integration Indices and Their Dynamic Interactions

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  • Lo Simon M.S.

    (United Arab Emirates University)

Abstract

We propose a new index based on the gravity model to measure global, regional, and subregional economic integration. Europe, America, Asia, and MENA exhibit different dynamic interactions between these three levels of integration. The MENA region has a distinctive dumbbell integration pattern - strong at the global and subregional levels but weak at the regional level. The panel data cointegration approach reveals that different types of integration are complements but not substitutes. Regional integration has the strongest positive externality in terms of fostering other types of integration. Promoting regionalization is the most efficient policy option.

Suggested Citation

  • Lo Simon M.S., 2026. "Economic Integration in MENA: The Global, Regional, and Subregional Integration Indices and Their Dynamic Interactions," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 41(2), pages 1-26, June.
    • Handle: RePEc:ris:integr:022606
    DOI: 10.11130/jei.2025026
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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment

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