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A long-run relationship between the trade and its determinants for a group of selected Arab Maghreb Union Countries

Abdullah, Hussin and Abdullah, Norehan and Abuhriba, Hadi Mohamad Othman (2013) A long-run relationship between the trade and its determinants for a group of selected Arab Maghreb Union Countries. International Journal of Development and Economic Sustainability, 1 (2). pp. 41-53. ISSN 2053-2199

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Abstract

The Arab Maghreb Union (AMU) comprising Algeria, Libya, Mauritania, Morocco, and Tunisia has established a framework to enhance regional cooperation on trade facilitation. It is doubtful whether the Arab Maghreb countries could achieve the goals of this regional cooperation or not. The objective of this study is to examine a long-run relationship between the trade and its determinants for a group of selected Arab Maghreb Union Countries.Using a data set consisting of a panel observation for the AMU countries for the period of 1989-2009; a panel unit root test was done to investigate the possibility of panel cointegration.Overall, the results are consistent with those found in Pedroni approach in all cases, parameters for the variables are found to be correctly signed and highly significant. In terms of trade openness, the results show that the trade barriers are found to be positively and significantly correlated with openness where their relationships within the AMU trade intensity ratios show a strong correlation.In other words, the trade barriers are fairly effective for increasing trade.

Item Type: Article
Uncontrolled Keywords: trade AMU, panel co-integration
Subjects: H Social Sciences > HF Commerce
Divisions: College of Arts and Sciences
Depositing User: Dr. Hussin Abdullah
Date Deposited: 21 Dec 2015 03:27
Last Modified: 21 Dec 2015 03:27
URI: https://repo.uum.edu.my/id/eprint/16653

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