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The Impact of FTAs on MENA Trade in Industrial and Agricultural Products

Author

Listed:
  • Maria-Dolores Parra

    (Universitat Jaume I)

  • Inmaculada Martínez-Zazoso

    (University of GöttingenAuthor-Name: Celestino Suárez-Burguet)

Abstract

This paper analyses the impact of Free Trade Agreements (FTAs) on Middle East and North African Countries (MENA) trade for the period 1994-2010. The analysis distinguishes between industrial and agricultural trade separately to take into account the different liberalisation schedules. An augmented gravity model is estimated using up-to-date panel data techniques to control for all time-invariant bilateral factors that influence bilateral trade as well as for the so-called multilateral resistance. We also control for the endogeneity of the agreements and test for self-selection bias due to the presence of zero trade in our sample. The main findings indicate that both North-South- FTAs and South-South-FTAs have a similar impact in terms of increasing trade in MENA countries showing greater global market integration. We conclude that FTAs that include agricultural products, in which MENA countries have a clear comparative advantage, are more desirable for these countries than those only including industrial products.

Suggested Citation

  • Maria-Dolores Parra & Inmaculada Martínez-Zazoso, 2014. "The Impact of FTAs on MENA Trade in Industrial and Agricultural Products," Working Papers 2014.03, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2014.03
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    References listed on IDEAS

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    1. Esmat Mostafa Kamel, 2021. "The MENA region's need for more democracy and less bureaucracy: A gravity model controlling for aspects of governance and trade freedom in MENA," The World Economy, Wiley Blackwell, vol. 44(6), pages 1885-1912, June.

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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