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Trade Liberalization in Arab Maghreb Union Countries

Hadili, Abduraawf and Raab, Roman and Wenzelburger, Jan (2016): Trade Liberalization in Arab Maghreb Union Countries.

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This paper explores the impact of trade liberalisation on the economies of the Arab Maghreb Union (AMU). We investigate the time period from 1995 to 2009 in terms of export growth, import growth, the balance of trade, and the balance of payments. Our empirical evidence shows that trade liberalisation did not enhance export growth in AMU countries during the given period. In contrast, it had a significant positive impact on import growth. Moreover, trade liberalisation worsened the balance of trade and the balance of payments. Governance indicators turn out to be important covariates in order to achieve the intended effects of trade liberalization.

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