Comparative advantage in the Middle East and North Africa
This paper asks whether net trade in the Middle East and North Africa (MENA) can be explained by differences in comparative costs and in the exploitation of scale economies. Based on a sample of six countries, it is shown that factor proportions do not significantly affect net trade. In an analysis based on a sample of three countries, we are also able to incorporate technical differences and differences in scale economies. We find no support of these variables significantly affecting net trade either. Therefore, we are fairly confident in drawing the conclusion that for our country sample, net trade does not seem to be explained by comparative costs, technical differences, or scale economies. This leads us to conclude that measures undertaken to increase trade between MENA countries without simultaneously removing domestic distortions may not be welfare improving.
Year of publication: |
1997
|
---|---|
Authors: | Ekholm, Karolina ; Torstensson, Johan ; Torstensson, Rasha |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 4.1997, 1, p. 33-35
|
Publisher: |
Taylor & Francis Journals |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The economics of the Middle East peace process : are there prospects for trade and growth?
Ekholm, Karolina, (1996)
-
Comparative advantage in the Middle East and North Africa
Ekholm, Karolina, (1997)
-
The Economics of the Middle East Peace Process: Are There Prospects for Trade and Growth?
Ekholm, Karolina, (1996)
- More ...