The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)

The Arab Maghreb Union (AMU) comprising Algeria, Libya, Mauritania, Morocco, and Tunisia have established a framework to enhance regional cooperation on trade facilitation. Today, the AMU countries have increased their trade integration into the world economy. Despite the effort of trade openness in...

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Main Author: Abuhriba, Hadi M. Othman
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Published: 2012
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advisor Abdullah, Norehan
Abdullah, Hussin
topic HF Commerce.
spellingShingle HF Commerce.
Abuhriba, Hadi M. Othman
The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)
description The Arab Maghreb Union (AMU) comprising Algeria, Libya, Mauritania, Morocco, and Tunisia have established a framework to enhance regional cooperation on trade facilitation. Today, the AMU countries have increased their trade integration into the world economy. Despite the effort of trade openness in the AMU, the economic growth, intra-trade and inter-trade are still lagging behind other developing countries in the Middle East, Asia, and Latin America. The objectives of this study are: 1) to examine the determinant of intra-regional trade in the AMU countries; 2) to examine the bilateral trade flows between AMU countries with selected European Union (EU) and Middle East (ME) countries; and 3) to investigate a long-run relationship between the trade and its determinants for a group of selected AMU, EU and ME countries. Using a data set of 1989-2009; the standard gravity model is used to measure the pattern and trend of bilateral trade. Overall, the results are consistent with those found in previous study where in all cases, parameters for the variables are found to be correctly signed and highly significant. A higher GDP increases trade while a longer distance inhibits trade. Larger population also results in higher trade. In terms of trade openness, the results show that the trade barriers are found to be positively and significantly correlated with openness. In short, the trade barriers are fairly effective for increasing trade. In analyzing the inter-trade of AMU with selected EU countries, namely Italy, Spain and France and selected ME, namely Egypt, Lebanon, and Syria, the results show that an increase in home GDP and partner’s countries GDP cause an increase in AMU’s trade. Population size, AMU’s real exchange rate, and trade openness are found to be positively related to trade
format Thesis
qualification_name Ph.D.
qualification_level Doctorate
author Abuhriba, Hadi M. Othman
author_facet Abuhriba, Hadi M. Othman
author_sort Abuhriba, Hadi M. Othman
title The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)
title_short The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)
title_full The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)
title_fullStr The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)
title_full_unstemmed The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)
title_sort determinants of trade and trade direction of arab maghreb union (amu)
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2012
url https://etd.uum.edu.my/3461/1/s91317.pdf
https://etd.uum.edu.my/3461/8/s91317.pdf
_version_ 1747827577521700864
spelling my-uum-etd.34612022-04-10T05:56:23Z The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU) 2012-05 Abuhriba, Hadi M. Othman Abdullah, Norehan Abdullah, Hussin Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF Commerce. The Arab Maghreb Union (AMU) comprising Algeria, Libya, Mauritania, Morocco, and Tunisia have established a framework to enhance regional cooperation on trade facilitation. Today, the AMU countries have increased their trade integration into the world economy. Despite the effort of trade openness in the AMU, the economic growth, intra-trade and inter-trade are still lagging behind other developing countries in the Middle East, Asia, and Latin America. The objectives of this study are: 1) to examine the determinant of intra-regional trade in the AMU countries; 2) to examine the bilateral trade flows between AMU countries with selected European Union (EU) and Middle East (ME) countries; and 3) to investigate a long-run relationship between the trade and its determinants for a group of selected AMU, EU and ME countries. Using a data set of 1989-2009; the standard gravity model is used to measure the pattern and trend of bilateral trade. Overall, the results are consistent with those found in previous study where in all cases, parameters for the variables are found to be correctly signed and highly significant. A higher GDP increases trade while a longer distance inhibits trade. Larger population also results in higher trade. In terms of trade openness, the results show that the trade barriers are found to be positively and significantly correlated with openness. In short, the trade barriers are fairly effective for increasing trade. In analyzing the inter-trade of AMU with selected EU countries, namely Italy, Spain and France and selected ME, namely Egypt, Lebanon, and Syria, the results show that an increase in home GDP and partner’s countries GDP cause an increase in AMU’s trade. Population size, AMU’s real exchange rate, and trade openness are found to be positively related to trade 2012-05 Thesis https://etd.uum.edu.my/3461/ https://etd.uum.edu.my/3461/1/s91317.pdf text eng public https://etd.uum.edu.my/3461/8/s91317.pdf text eng public Ph.D. doctoral Universiti Utara Malaysia Abdelkafi, J. (undated), Le vignoble du Cap Bon (Tunisie) (The vineyards of Cap Bon (Tunisia)). Available in French http://www.icomos.org/ studies/viticoles/viticole23.pdf. Agostino, M.R., Aiello, F. and Cardamone, P. (2008). Evaluating the impact of non-reciprocal trade preferences using gravity models. Applied Economics, ISSN: 0003-6846. Ahmed A. (2000). 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