A Quiz on the Net Benefits of Trade Creation and Trade Diversion in the QIZs of Jordan and Egypt
The main objectives of this study are: (1) to quantify the amounts of both trade creation and trade diversion in each of the countries involved, (2) to explain why the effects especially in Jordan have been much larger than one might have expected and seemingly larger than those in Egypt even though Egypt may have had a stronger comparative advantage in such exports than Jordan, and (3) to identify and explain those effects other than on trade, such as in attracting FDI, developing local entrepreneurship, encouraging female labor force participation, developing linkages to firms outside the QIZ and on broader trade and industrial policies. We shall also try to identify policy and other changes that might have allowed these effects to be more positive and stronger than they actually were. Because of the longer experience with the Jordanian QIZs, somewhat more emphasis is placed on the Jordanian data and more detailed statistical analysis were possible. But the Egyptian case is also illustrative, especially for looking at the differential benefits on firms of different size, diversity and sophistication of product lines and benefits accruing to Egypt from attracting Turkish investments.
|Date of creation:||04 Jan 2010|
|Date of revision:||04 Jan 2010|
|Publication status:||Published by The Economic Research Forum (ERF)|
|Contact details of provider:|| Postal: 21 Al-Sad Al Aaly St. Dokki, Giza|
Web page: http://www.erf.org.eg
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Denise Eby Konan & Keith E Maskus, 2000. "Bilateral Trade Patterns and Welfare: An Egypt-EU Preferential Trade Agreement," Working Papers 200001, University of Hawaii at Manoa, Department of Economics.
- Tarik Yousef & Hassan Al-Atrash, 2000. "Intra-Arab Trade; Is it too Little?," IMF Working Papers 00/10, .
- 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.
- James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
- 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.
- Khalid Sekkat, 1996. "Regional integration among the Maghreb countries and free trade with the European union: a challenge for both sides of the mediterranean," ULB Institutional Repository 2013/7332, ULB -- Universite Libre de Bruxelles.
- McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
- Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
- Karolina Ekholm & Johan Torstensson & Rasha Torstensson, 1996. "The Economics of the Middle East Peace Process: Are There Prospects for Trade and Growth?," The World Economy, Wiley Blackwell, vol. 19(5), pages 555-574, 09.
- Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-153, February.
- Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
- Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:514. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel)
If references are entirely missing, you can add them using this form.