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On the Determinants of Trade in Services: Evidence from the MENA Region

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  • Fida Karam
  • Chahir Zaki

    (Faculty of Economics and Political Science, Cairo University, Egypt)

Abstract

This paper examines the determinants of aggregate flows of service trade in MENA countries using an adapted version of the gravity model and a panel dataset covering the 2000-2009 period for 21 countries and 10 sectors. A new determinant of trade performance is introduced: the number of commitments undertaken by sector in the WTO as well as the availability of those commitments by mode. The results show that being a WTO member boosts trade in services. In addition, the number of commitments and binding these commitments increase exports, imports and trade in services. This positive and significant effect remains robust even after controlling for several econometric issues, namely the selection bias related to the WTO membership and the endogeneity of commitments.

Suggested Citation

  • Fida Karam & Chahir Zaki, 2012. "On the Determinants of Trade in Services: Evidence from the MENA Region," Working Papers 692, Economic Research Forum, revised 2012.
    • Handle: RePEc:erg:wpaper:692
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    Cited by:

    1. Jose Luis Castillo Mezarina, 2021. "The impact of free trade agreements in national markets: Evidence from the telecommunications sector in Latin America," Review of International Economics, Wiley Blackwell, vol. 29(4), pages 860-903, September.
    2. Ahmad A. Al-Majali & Radi M. Adayleh, 2018. "International Competitiveness in Services in Some Middle East and North Africa Countries Using Gravity Model," International Review of Management and Marketing, Econjournals, vol. 8(2), pages 53-62.
    3. Boughanmi Houcine & Al-Riyami Said, 2019. "Service Trade Liberalization in Oman: International Commitments and Trade Performance," Review of Middle East Economics and Finance, De Gruyter, vol. 15(1), pages 1-12, April.
    4. Gnangnon, Sèna Kimm, 2020. "Aid for Trade and Services Export Diversification in Recipient-Countries," EconStor Preprints 210467, ZBW - Leibniz Information Centre for Economics.
    5. Sèna K. Gnangnon, 2021. "Aid for Trade and services export diversification in recipient countries," Australian Economic Papers, Wiley Blackwell, vol. 60(2), pages 189-225, June.
    6. Shadrack Muthami Mwatu, 2023. "Determinants of gendered participation in domestic trade: evidence from Kenya," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-15, December.
    7. Amélie GUILLIN & Isabelle RABAUD & Chahir ZAKI, 2022. "Does the Depth of Trade Agreements Matter for Trade in Services? Evidence from the MENA Region," LEO Working Papers / DR LEO 2984, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.

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