Abstract
Regional Trade Agreements and Developing Countries’ Trade Performance: Evidence from Algeria and the European Union Association Agreement
Highlights
In the last fifteen years, the phenomenon of Regional Trade Agreements (RTAs), known as Free Trade Agreements (FTAs), has experienced a significant and constant increase
(3) Revealed Comparative Advantages and (4) Regional Orientation Index. These trade indicators allow the researcher to determine the potential effect of the RTA on the Algerian foreign trade performance
The ex-ante analysis has shown that the EUAlgeria RTA was expected to increase trade within the region
Summary
In the last fifteen years, the phenomenon of Regional Trade Agreements (RTAs), known as Free Trade Agreements (FTAs), has experienced a significant and constant increase. It is acknowledged that the European Union (EU) has the most extensive network of RTAs including both developed and developing countries (Panagravia, 2002) Among these partnerships, the EuroMediterranean agreements (Euro-Med) are raising many debates concerning the actual impact of these agreements on trade performance (Peridy, 2005). It is reported that the share of the North African countries (combined with the MiddleEastern nations) in the global trade has dropped from 8% in 1981 to 2.5% in 2004 (Dennis, 2006).
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