In 1997, fourteen Arab countries concluded an agreement, aimed at achieving the Greater Arab Free Trade Area (GAFTA) by 1.1.2007 at the latest. This paper provides a first ex-post appraisal of the GAFTA agreement’s trade effects. Based on new theoretical developments of the gravity equation,...

I apply the fixed versus variable cost trade-off associated with a multinational firm’s choice between investing abroad and exporting to a setting where the multinational is located inside an economically integrating region. I find that reducing obstacles to investment unambiguously favours...

A new cooperation Agreement has been signed between the European Union and the 77 ACP Countries in Cotonou (Benin) on June 23rd 2000. A point of this agreement is regarding a new trade cooperation between these different countries in districts (or regions) gathered and the European Union, based...

I. Introduction : In the Post Cold War Era, no other region has shown such a high level of economic dynamism as Northeast Asia. This can be ascribed to China’s economic rise and a rapid expansion of intra-regional economic exchanges and cooperation, i.e., there has been continued expansion and...

After matching a rich micro-level Iranian customs dataset with a macro-level cross-country database on Iranian diaspora stocks, we establish that diaspora matters for dynamics of Iranian exporters. We document the extent to which Iranian emigrants foster exports through both intensive and...

At present, the European Union (EU) is facing the biggest round of enlargement in its history. Many of the EU accession countries, which are less developed than the incumbents, will seek accession to the European Monetary Union (EMU) soon after the required two-year qualifying period. This is...

This paper analyzes, in a linear market with two adjacent countries, how firm location and optimal plant size depend on differences in the quality of infrastructures and income levels between countries. The study considers also how a free trade agreement may change, in this context where...

This study examines the feasibility of economic integration in Latin America. We analyze the existence of the long-term and short-term common movements among key macro variables—real GDP, intra-regional trade, private investment and consumption—in the seven largest economies in Latin...

The paper explores the argument that trade between the Mercosur countries should be stimulated by preferential policies because of their geographic proximi - ty. That is, that the Mercosur countries are candidates for “natural” integration. The paper finds that, on average, transportation...

Since the end of the Second World War, economic integration has been regarded as being one of the most important global economic policies. Its relevance has not diminished and most countries, especially those that are developing, consider it to be a long-term strategy. Integration is present in...