Olarreaga, MarceloGourdon, JulienCarrere, Celine2012-03-192012-03-192012-02-01https://hdl.handle.net/10986/3256This paper builds on theoretical predictions that show that gains from regional integration are unevenly distributed between resource rich and poor countries. It explores the effects of different integration schemes in the Middle East and North Africa. The results suggest that within the Pan Arab Free Trade Agreement, there is significant trade creation for resource poor countries associated with regional integration, and no evidence of trade diversion. In resource rich countries, however, there is evidence of pure trade diversion in both resource-rich/labor-abundant countries and resource-rich/labor-importing countries. This underscores the idea that regional integration can help to spread the benefits of unevenly distributed resource wealth among the region's economies.CC BY 3.0 IGOAGGREGATE IMPORTSARAB FREE TRADE AGREEMENTBILATERAL IMPORTSBILATERAL TRADEBORDER TRADECOMMON MARKETCOMPARATIVE ADVANTAGECONSUMER PRICESCONSUMERSCOUNTRY IMPORTSCROSS-BORDER TRADECUSTOMSDATE OF ENTRY INTO FORCEDATE OF NOTIFICATIONDEVELOPING WORLDDEVELOPMENT POLICYECONOMIC COOPERATIONECONOMIC EFFICIENCYECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC OBJECTIVESECONOMIC SIZEEVIDENCE OF TRADE DIVERSIONEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORTING COUNTRYEXPORTSFINAL GOODSFOREIGN EXCHANGEFREE TRADEFREE TRADE AREAFUEL TRADEGDPGLOBAL COMPETITIVENESSGRAVITY EQUATIONGRAVITY MODELIMPORT DATAIMPORTING COUNTRYINEFFICIENCYINTERNATIONAL BANKINTRA-REGIONAL TRADEINTRA-REGIONAL IMPORTSINTRA-REGIONAL TRADEINTRAREGIONAL TRADELOSS OF TARIFF REVENUEMEMBER COUNTRIESMFN TARIFFSNATURAL RESOURCESNON-TARIFF BARRIERSNONTARIFF BARRIERSOIL EXPORTEROIL EXPORTERSOIL IMPORTSPANEL REPORTSPATTERNS OF TRADEPOLICY RESEARCHPREFERENTIAL ACCESSPREFERENTIAL AGREEMENTPREFERENTIAL AGREEMENTSPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTPREFERENTIAL TRADE AGREEMENTSPRODUCTION STRUCTUREREGIONAL INTEGRATIONREGIONAL INTEGRATION AGREEMENTSREGIONAL INTEGRATION SCHEMESREGIONAL LIBERALIZATIONREGIONAL PARTNERSREGIONAL TRADEREGIONAL TRADE AGREEMENTSREGIONAL TRADE INTEGRATIONREGIONALISMSPECIALIZATIONSTANDARD ERRORSTARIFF BARRIERSTARIFF PREFERENCESTARIFF REVENUETERMS OF TRADETRADE BARRIERSTRADE COSTSTRADE CREATINGTRADE CREATIONTRADE EFFECTSTRADE FLOWSTRADE INTEGRATIONTRADE POLICYTRADE RELATIONSHIPWEALTHWORLD MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5970