Working Paper: CEPR ID: DP7807
Authors: Bernard Hoekman; Khalid Sekkat
Abstract: This paper surveys the recent literature on Arab economic integration, discusses the goals and progress that has been made to date and some of the key policy, regulatory and political factors that underpin the segmentation of Arab markets. It argues that there has been an excessive focus by both analysts and policymakers on trade in goods and that the prospects for ? and returns to ? efforts to deepen integration of other markets (services, labor and capital) are likely to be higher.
Keywords: Arab economies; Arab League; GCC; PAFTA; Regional integration; Trade agreements
JEL Codes: F15; F2; F53; O53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Lack of effective regional integration (F15) | Low levels of intra-Arab trade in goods (F19) |
| Low levels of intra-Arab trade in goods (F19) | Weak incentives for further integration (F15) |
| Weak incentives for further integration (F15) | Status quo (C62) |
| Absence of trade (F19) | Lack of integration efforts (F15) |
| Political objectives (reluctance to transfer sovereignty) (F52) | Weak regional institutions (O17) |
| Weak regional institutions (O17) | Limited intra-Arab trade (F19) |
| Integration of services and labor markets (J68) | Overall economic gains (F69) |