Mediterranean union integration [Ressource électronique] : an augmented gravity model / Aazam Mohtaram Ghalati

Diplôme de maîtrise : Génie industriel : Ecole polytechnique de Montréal : 2012

Bibliogr. p. 123-131

Nowadays, the forces of globalization, on the one hand, have shaped the world's economic environment and on the other hand, led to the increased importance of economic integration. Hence, a faster growth of corporations and countries after they integrated is not a big surprise. Recent studies have shown that the creation of an economic alliance or network is one of the most effective methods to face new global economic opportunities and challenges. The central question of whether a monetary union should be pursued is addressed by the OCA, which is a useful starting point for any discussion on regional integration. The goal of this study is to analyse the level of integration among the Middle Eastern and North African countries, in relationship with the European Union. In fact, the level of integration in three regions is examined: the Mediterranean Union, the MENA region and eight selected countries from the MENA region. The present study selects 12 countries within the MENA region and the EU as a whole. All countries of the Mediterranean region are not included in this study due to some barriers such as the unavailability of data. 12 countries from the MENA region are Albania, Algeria, Croatia, Egypt, Israel, Jordan, Lebanon, Mauritania, Morocco, Syria, Tunisia, and Turkey. An augmented gravity model is used. The dependent variable in this model is exports from each economy to its partners. Independent variables are: traditional gravity variables, Hecksher Ohlin variables and convergence variables. We use a cross-section time-series analysis based on the bilateral trade. The data cover the period from 1995 to 2010. Our analysis shows that the prospect for further integration of the three regions is promising and looks encouraging, but many challenges still persist. These challenges could be such as political relationships or some existing economic blocks, which provide a first stepping stone to a larger currency union.