Regional Economic Integration in the Middle East and North Africa : Beyond Trade Reform
Limited integration has stifled the Middle East and North Africa (MENA) region's ability to tap into its significant potential for economic growth and job creation. The MENA region is among the least integrated in the world economy. Although h...
| Main Authors: | , |
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| Format: | Publication |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/11/17018192/regional-economic-integration-middle-east-north-africa-beyond-trade-reform http://hdl.handle.net/10986/12220 |
| Summary: | Limited integration has stifled the
Middle East and North Africa (MENA) region's ability to
tap into its significant potential for economic growth and
job creation. The MENA region is among the least integrated
in the world economy. Although home to 5.5 percent of the
world's population (on average for 2008-10) and 3.9
percent of the world's gross domestic product (GDP),
the region's share of nonoil world trade is only 1.8
percent. By contrast, countries that have opted for a
liberal trade and investment regime most notably in East
Asia have experienced a significant increase in trade,
employment, and per capita income. If petroleum and gas are
taken into consideration, the MENA region is far more
integrated in the world economy, with total exports
accounting for 6.2 percent of total world trade. Exports of
oil and gas represent about three-quarters of MENA's
total exports. This study shows that, in spite of
commendable reform efforts in recent years, the MENA region
continues to face constraints to economic competitiveness in
general, and trade barriers in particular. Of critical
importance is the need to improve trade-related
infrastructure and strengthen trade facilitation activities.
Moreover, this study demonstrates that preferential trade
agreements (PTAs), though helpful in many respects, do not
significantly expand exports. Instead, the focus in must be
on opening up to the rest of the world, which may require
that individual countries aggressively pursue unilateral
liberalization policies. While regional cooperation and
integration can bring benefits, these efforts can also pose
significant costs if not carried out in a manner that is
compatible with broader global integration trends. Finally,
while there is reasonable potential to enhance trade in
goods, trade in services is a major untapped source of trade
growth within the region and between the region and the rest
of the world. The main objective of this report is to assess
the achievements in, opportunities for, and challenges of
deeper regional economic cooperation and integration within
the MENA region and between the region and the rest of the world. |
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