Constraints on Trade in the MENA region
IMF Working Papers, February 1, 2010
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- Constraints on Trade in the MENA region
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Bibliographic details
- Authors: Hirut Wolde, Rina Bhattacharya
- Published: February 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451962604.001
Research question and methodology
- Objective: Estimate gravity models to assess whether trade volumes of countries in the MENA region are significantly lower than expected given their economic, cultural and geographical characteristics.
- Method:
- Estimate standard gravity models.
- "Augment" the standard gravity model with relevant variables from the World Bank's Business Enterprise surveys.
Key empirical findings
- Standard gravity-model variables:
- Cannot explain a significant part of MENA's trade performance, particularly on exports.
- Augmented model results:
- Variables from the World Bank's Business Enterprise surveys are important in explaining MENA underperformance in trade.
- In particular, transport constraints and inefficiencies in customs clearance processes are identified as important explanatory factors for the region's trade underperformance.
Thematic conclusions
- Exports: Especially affected — standard model variables do not account for the observed export shortfall.
- Trade barriers highlighted: Transport constraints and customs clearance inefficiencies emerge as major impediments to trade performance in the MENA region.
Publication metadata (excerpt)
- Authors: Hirut Wolde, Rina Bhattacharya
- Date: February 1, 2010
- Pages: 19
- Series: Working Paper No. 2010/031
- DOI: https://doi.org/10.5089/9781451962604.001
- ISBN: 9781451962604
- ISSN: 1018-5941
Source: "Constraints on Trade in the MENA region", Hirut Wolde and Rina Bhattacharya, IMF Working Papers, February 1, 2010.
Content in this bundle
- Gravity Model: Explanation of Variables