Trade in the Mashreq An Empirical Examination

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....

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Bibliographic Details
Main Author: Blavy, Rodolphe
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2001
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Trade in the Mashreq  |b An Empirical Examination  |c Rodolphe Blavy 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2001 
300 |a 31 pages 
651 4 |a Israel 
653 |a Econometric Modeling: General 
653 |a Balance of trade 
653 |a International Trade Organizations 
653 |a Trade Policy 
653 |a Trade balance 
653 |a Currency 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a Gravity models 
653 |a International economics 
653 |a Foreign Exchange 
653 |a Commercial policy 
653 |a Exports 
653 |a Econometric models 
653 |a Trade barriers 
653 |a Real exchange rates 
653 |a Econometrics 
653 |a Empirical Studies of Trade 
653 |a Econometrics & economic statistics 
653 |a Foreign exchange 
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520 |a 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