Economic integration and the two margins of trade: the impact of the Barcelona Process on North African countries’ exports
According to recently developed models of trade with imperfect competition and heterogeneous firms, lower trade costs increase bilateral trade not only through a rise in the mean value of individual shipments (the intensive margin of trade), but also through an increase in the number of exporting firms (the extensive margin of trade). The main aim of this paper is to provide new empirical evidence of the effects of the Euro-Mediterranean (EuroMed) agreements on both margins of trade. Using highly disaggregated export data for four North African countries (Algeria, Egypt, Morocco and Tunisia) and two Middle East countries (Jordan, Lebanon) over the period from 1995 to 2008, we estimate the impact of the EuroMed agreements on both trade margins and we provide empirical evidence of the validity of the theoretical predictions. Results indicate that only the North African countries enjoyed a positive and significant effect of the Barcelona process on their exports to the four biggest countries in the European Union.
|Date of creation:||2010|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Soloaga, Isidro & Alan Wintersb, L., 2001.
"Regionalism in the nineties: what effect on trade?,"
The North American Journal of Economics and Finance,
Elsevier, vol. 12(1), pages 1-29, March.
- Soloaga, Isidro & Winters, L. Alan, 1999. "Regionalism in the Nineties: What Effect on Trade?," CEPR Discussion Papers 2183, C.E.P.R. Discussion Papers.
- David Hummels & Alexandre Skiba, 2002.
"Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture,"
NBER Working Papers
9023, National Bureau of Economic Research, Inc.
- David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
- Hoekman, Bernard & Konan, Denise Eby, 1999.
"Deep integration, nondiscrimination, and Euro-Mediterranean free trade,"
Policy Research Working Paper Series
2130, The World Bank.
- Hoekman, Bernard & Konan, Denise, 1999. "Deep Integration, Non-Discrimination and Euro-Mediterranean Free Trade," CEPR Discussion Papers 2095, C.E.P.R. Discussion Papers.
- Mayer Thierry & Ottaviano Gianmarco I.P., 2008. "The Happy Few: New Facts on the Internationalization of European Firms Based on Firm-level Evidence," L'industria, Società editrice il Mulino, issue 2, pages 221-244.
- Bernard Hoekman & Denise Eby Konan, 2005.
"Deepening Egypt-US Trade Integration: Economic Implications of Alternative Options,"
200501, University of Hawaii at Manoa, Department of Economics.
- Denise KONAN & Bernard HOEKMAN, "undated". "Deepening Egypt-US Trade Integration: Economic Implications of Alternative Options," Middle East and North Africa 330400039, EcoMod.
- Inmaculada Martinez-Zarzoso & Celestino Suarez-Burguet, 2005. "Transport costs and trade: Empirical evidence for Latin American imports from the European union," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(3), pages 353-371.
- Persson, Maria & Wilhelmsson, Fredrik, 2006. "Assessing the Effects of EU Trade Preferences for Developing Countries," Working Papers 2006:4, Lund University, Department of Economics, revised 26 Jun 2006.
- Martínez-Zarzoso, Inmaculada & Felicitas, Nowak-Lehmann D. & Horsewood, Nicholas, 2009. "Are regional trading agreements beneficial?: Static and dynamic panel gravity models," The North American Journal of Economics and Finance, Elsevier, vol. 20(1), pages 46-65, March.
- Inmaculada Martínez-Zarzoso & Gordon Wilmsmeier, 2008.
"Determinants of Maritime Transport Costs. A Panel Data Analysis for Latin American Trade,"
Ibero America Institute for Econ. Research (IAI) Discussion Papers
172, Ibero-America Institute for Economic Research.
- Gordon Wilmsmeier & Inmaculada MartÃnez-Zarzoso, 2009. "Determinants of maritime transport costs -- a panel data analysis for Latin American trade," Transportation Planning and Technology, Taylor & Francis Journals, vol. 33(1), pages 105-121, October.
- Katerina Gradeva & Inmaculada Martínez-Zarzoso, 2009. "Trade as Aid: The Role of the EBA-Trade Preferences Regime in the Development Strategy," Ibero America Institute for Econ. Research (IAI) Discussion Papers 197, Ibero-America Institute for Economic Research.
- Magee, Christopher S.P., 2008. "New measures of trade creation and trade diversion," Journal of International Economics, Elsevier, vol. 75(2), pages 349-362, July.
- Russell Hillberry & David Hummels, 2005.
"Trade Responses to Geographic Frictions: A Decomposition Using Micro-Data,"
NBER Working Papers
11339, National Bureau of Economic Research, Inc.
- Hillberry, Russell & Hummels, David, 2008. "Trade responses to geographic frictions: A decomposition using micro-data," European Economic Review, Elsevier, vol. 52(3), pages 527-550, April.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:27117. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.