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Trade in Intermediates and Agro-Food Value Chain Integration: The Case of the Arab Region

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  • Houcine Boughanmi
  • Fatma Al-Saadi
  • Lokman Zaibet
  • Ibtisam Al Abri
  • Abdallah Akintola

Abstract

Arab intra-regional trade in agro-food accounts for more than half of the total Arab agro-food trade, displaying strong “trade-intensity†over the past decade. This indicates the potential of developing agro-food regional production networks aligning with the region’s comparative advantage in agro-food products. However, intermediates trade, as an indicator of value chain integration, has been low and sluggish due to various structural and policy factors. This article aims to analyze the determinants of trade in agro-food intermediates in the Arab region, focusing on the role and significance of regional trade arrangements and trade facilitation. The Broad Economic Category (BEC) classification is used to categorize goods into intermediate and final goods. Our analysis, using the gravity model, shows that regional trade arrangements in their current form do not significantly affect regional trade (except in the Gulf Cooperation Council [GCC]). We also reveal that timeliness in export delivery is an important determinant of trade in agro-food intermediates. Thus, Arab countries should simplify their customs clearance procedures and engage in a deeper form of regional integration to help build trade corridors and enhance regional value-added chains (RVCs).

Suggested Citation

  • Houcine Boughanmi & Fatma Al-Saadi & Lokman Zaibet & Ibtisam Al Abri & Abdallah Akintola, 2021. "Trade in Intermediates and Agro-Food Value Chain Integration: The Case of the Arab Region," SAGE Open, , vol. 11(1), pages 21582440211, March.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:1:p:21582440211002513
    DOI: 10.1177/21582440211002513
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    References listed on IDEAS

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    Cited by:

    1. Nazir Muhammad Abdullahi & Xuexi Huo & Qiangqiang Zhang & Aminah Bolanle Azeez, 2021. "Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria," SAGE Open, , vol. 11(4), pages 21582440211, December.
    2. Ibtisam Al Abri & Mariam Alkazemi & Waed Abdeljalil & Hala Al Harthi & Fatema Al Maqbali, 2023. "Attitudinal and Behavioral Loyalty: Do Psychological and Political Factors Matter in Tourism Development?," Sustainability, MDPI, vol. 15(6), pages 1-22, March.

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