Initial Conditions and Incentives for Arab Economic Integration : Can the European Community's Success be Emulated?

Hoekman, Bernard ; Messerlin, Patrick

World Bank, Washington, DC

关键词: AGRICULTURAL PRODUCE;    AGRICULTURE;    BENCHMARKS;    BILATERAL AGREEMENTS;    BILATERAL TRADE;   

DOI  :  10.1596/1813-9450-2921
RP-ID  :  WPS2921

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors compare the EuropeanCommunity's "trade fundamentals" prevailingin the 1960s with those applying in Arab countries today.The fundamentals differ significantly-Arab countries trademuch less with each other than EC members did, and theimportance of such trade in GDP varies greatly. Thissuggests that a viable Arab integration strategy must followa path that differs from the preferential tradeliberalization-led approach implemented by the EuropeanCommunity. An alternative is to complement long-standingattempts to liberalize merchandise trade with an effort thatrevolves around service sector reforms and liberalization.This may prove to be an effective mechanism to supportreforms as, in principle, there is a major constituency ineach Arab country that has an interest in improving theperformance of services-the natural resource-based andmanufacturing sectors. A key condition for such an approachto be feasible is that Arab cooperation helps overcomepolitical economy resistance to national, unilateral action,or, generates direct gains from cooperation in specificpolicy areas. The EC experience suggests that aservices-based integration strategy will be complex and mustbe carefully designed and sequenced. Given the importance ofservices-related trade and logistics transactions costs, afirst step might focus on bringing such costs down through aconcerted joint effort.