Participation of Arab countries in global value chains
To what extent are countries in the Arab region participating in the global value chains (GVCs) that now dominate world trade? What are the main determinants of engagement in GVCs? And what are the expected benefits for Arab countries from joining them? This column answers these questions, concluding that it is important to focus on the products in which countries both enjoy a natural comparative advantage and can increase domestic value added in the intermediate and final parts of the production process.
The future of regionalism in the Arab world: a political economy view
The potential growth benefits of greater trade integration of the Arab countries, both within the Middle East and with the rest of the world economy, have long been discussed. But as this column explains, in the current climate of international political and economic relations, moves towards trade liberalisation and new or deeper trade agreements are unlikely to happen. Policy-makers in the region need to pursue alternative strategies to develop their economies.
EU climate policy: potential effects on the exports of Arab countries
The carbon border adjustment mechanism aims to ensure that Europe’s green objectives are not undermined by the relocation of production to parts of the world with less ambitious climate policies – but it could impose substantial costs on developing countries that export to the European Union. This column examines the potential impact on exporters in the Arab world – and outlines possible policy responses that could mitigate the economic damage.
Should Arab countries join the WTO’s agreement on government procurement?
Not all members of the World Trade Organization are signatories of the institution’s Agreement on Government Procurement – the GPA. Indeed, although many developing economies are now joining the agreement or at least acquiring observer status, it has long been thought that the costs outweigh the benefits. This column re-evaluates the pros and cons of GPA accession for Arab countries.
Can a free trade area in services boost trade within the Arab region?
With trade in goods among Arab countries remaining modest, trade in services could play the pivotal role of an engine of growth in economic integration within the region, as well greater participation in global value chains. This column outlines progress to date and what needs to be done to make a success of AFTAS, the Arab free trade area in services.
Economic interdependence and conflict management in MENA
Do preferential trade agreements and regional integration help to promote peace between neighbouring countries? This column looks at some of the research evidence on the interactions between economic interdependence and conflict management and prevention in the Middle East and North Africa.
How COVID-19 could shape a new world order
The COVID-19 pandemic is a massive shock to the world economy and its impact will be wide-ranging across all domains of life. This column examines some of the potential effects – from the household level through societies’ priorities to international relations.