7 Intra-Arab Trade: Determinants and Prospects for Expansion
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

Abstract

The promotion of trade among Arab countries has long been considered the basis for cooperation and economic integration within the League of Arab States. Though this vision had its origins in a political perspective, the development of Arab economies, especially in the fields of industrialization and foreign trade, contributed to the economic rationale for the promotion of intra-Arab trade. In fact, since the early fifties, joint Arab trade efforts have attempted to liberalize intra-Arab trade through various channels. Such channels include both multilateral and bilateral trade agreements and the recently established Arab Trade Financing Program. These vehicles were expected to allow Arab countries to achieve gains from increased trade, to take advantage of economies of scale that would enable them to produce for a regional market, and to promote competition.