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Trade asymmetries in the Mediterranean basin

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  • Konstantaras, Konstantinos
  • Philippas, Dionisis
  • Siriopoulos, Costas

Abstract

The paper examines the evolution of European Union's trade asymmetries across the Mediterranean basin, by highlighting the impact of the 1995 Barcelona convention's free trade agreements. Asymmetry is gauged by measuring the speed of trade openness convergence paths between the Mediterranean North and South. The EU's Southern Mediterranean partners' reaction to their free trade agreements is examined with a series of convergence tests, accounting for endogeneity and instrumenting with spatial geographic matrices and geopolitical dummy variables. It is revealed that following the European Union's 1995 free trade initiatives the trade asymmetry between Middle Eastern and North African countries and their Northern counterparts becomes more asymmetric, ratifying Prebisch-Singer's empirical hypothesis.

Suggested Citation

  • Konstantaras, Konstantinos & Philippas, Dionisis & Siriopoulos, Costas, 2018. "Trade asymmetries in the Mediterranean basin," The Journal of Economic Asymmetries, Elsevier, vol. 17(C), pages 13-20.
    • Handle: RePEc:eee:joecas:v:17:y:2018:i:c:p:13-20
    DOI: 10.1016/j.jeca.2017.12.002
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    More about this item

    Keywords

    Trade asymmetries; Convergence; Openness; Free trade agreement; JEL; C21; C33; F14;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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