Gafta and intra-arab trade (1997-2004)‎ : an analysis

Abstract EN

Arab efforts aimed at the establishment of a regional bloc have been revived through the implementation of the Greater Arab Free Trade Area (GAFTA).

In this paper, the implication of the liberalization process on intra-Arab trade was analyzed.

An assessment of the evolution of the trade intensity as well as the propensity to trade between Arab countries was carried out.

Results strongly suggest that the liberalization scheme did not increase the intensity of trade inside the Arab region.

However, three subregions are highly integrated.

In addition, the evolution of the composition of intra-Arab trade throughout the implementation of GAFTA was investigated.

Results show that intra-regional trade expansion occurred the most in product categories in which the Arab world is not competitive in world markets.

Finally, a sketch of the prospects of an expansion of intra-Arab trade in goods in which the Arab countries are efficient producers was presented.