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The impact of FTAs on MENA trade in agricultural and industrial products

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  • Parra, Maria Dolores
  • Martínez Zarzoso, Inmaculada
  • Suárez Burguet, Celestino

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 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 factors. 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 North-South-FTAs and South-South- FTAs have a differential impact in terms of increasing trade in MENA countries, with the former being more beneficial in terms of exports for MENA countries, but both showing greater global market integration. We also find that FTAs that include agricultural products, in which MENA countries have a clear comparative advantage, have more favourable effects for these countries than those only including industrial products. JEL code: F10, F15

Suggested Citation

  • Parra, Maria Dolores & Martínez Zarzoso, Inmaculada & Suárez Burguet, Celestino, 2015. "The impact of FTAs on MENA trade in agricultural and industrial products," Working Papers 2072/250131, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/250131
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    References listed on IDEAS

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    Cited by:

    1. Cardozo, Adriana R. & Martínez-Zarzoso, Inmaculada & Vogler, Paula L., 2020. "The impact of FTAs on MENA exports of intermediate and final goods," University of Göttingen Working Papers in Economics 402, University of Goettingen, Department of Economics.
    2. Poomthan Rangkakulnuwat & Rungravee Weravess, 2022. "The gravity model for rice exports: The cases of India and Thailand," Economics Bulletin, AccessEcon, vol. 42(3), pages 1432-1473.
    3. Cruzatti C., John, 2021. "Free Trade Agreements and Development: a Global Analysis with Local Data," Working Papers 0702, University of Heidelberg, Department of Economics.
    4. Javad ABEDINI & Nicolas PÉRIDY, 2020. "The Relevance of Regional Integration in the Eu-romed Area: Evidence from a Logistic Median-Voter Model," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 52, pages 39-57.
    5. Adriana Cardozo & Inmaculada Martínez‐Zarzoso & Paula L. Vogler, 2022. "The impact of free trade agreements on Middle East and North Africa exports of intermediate and final goods," The World Economy, Wiley Blackwell, vol. 45(5), pages 1501-1527, May.
    6. Permani, Risti & Xu, Xing, 2020. "The Nexus between Natural disasters, Supply Chains and Trade – Revisiting the Role of FTAs in Disaster Risk Reduction," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304269, Agricultural and Applied Economics Association.
    7. Nsabimana, Aimable & Tirkaso, Wondmagegn Tafesse, 2019. "Examining coffee export performance in Eastern and Southern African countries: do bilateral trade relations matter?," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 59(1), July.
    8. Risti Permani & Xing Xu, 2022. "The nexus between natural disasters, supply chains and trade—Revisiting the role of preferential trade agreements in disaster risk reduction," The World Economy, Wiley Blackwell, vol. 45(10), pages 3002-3030, October.
    9. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.
    10. Abdessalem Abassi & Lota Dabio Tamini, 2016. "Trade performance and potential of North African countries: An application of a stochastic frontier gravity model," Cahiers de recherche CREATE 2016-4, CREATE.
    11. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.
    12. Bangchu Qiu & Gang Tian & Daoming Wang, 2022. "Empirical Analysis of Sustainable Trade Effects of FTAs Based on Augmented Gravity Model: A Case Study of China," Sustainability, MDPI, vol. 15(1), pages 1-12, December.

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    More about this item

    Keywords

    Negocis; Finances internacionals; Integració econòmica; 339 - Comerç. Relacions econòmiques internacionals. Economia mundial. Màrqueting;
    All these keywords.

    JEL classification:

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

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