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Trade in the Mashreq: An Empirical Examination
Author:
Mr. Rodolphe Blavy null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2001: Issue 163
Language:
English
Publication Date:
01 Oct 2001
DOI:
https://doi.org/10.5089/9781451857931.001
ISBN:
9781451857931
ISSN:
1018-5941
Pages:
31
Keywords:
WP; IMF trade restrictiveness index
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper provides a framework for understanding trade patterns in the Mashreq. An augmented gravity model is used to compare actual with expected levels of trade. Trade barriers, political uncertainty, and over-appreciation of domestic currencies seem to explain low levels of international trade. At the intra-regional level, specific trade barriers between Israel and other Mashreq countries reduce further levels of trade. Quite surprisingly, removing Israel from the sample leads to higher actual intra-regional trade than predicted. The analysis suggests that trade liberalization, correction of currency misalignments, reduction of political uncertainty, and improved trade relations with Israel would boost trade in the region.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund