The recent integration of the countries of the MENA region in globalization movement and the signing of the Euro-Med agreements with the European Union has naturally prompted researchers and economists to test the hypothesis of convergence towards the Europe. This paper, which is in this context, tends to test whether movement toward international trade will foster a reduction in the disparity of incomes among countries. More specifically, we try to answer the following question: does international trade allows MENA Countries to converge in GDP per capita to Southern European one, and if this convergence is possible, what is the time required for a developing country to reduce the gap that separates the countries of a developed one? Using time series approach convergence over the period 1990-2011, results shows that the convergence hypothesis is checked for most of the selected countries in the MENA region.Our findings show also that the calculation of the time required for MENA countries to reduce the gap that separates to the Southern European one varies from one country to another.
Abramovitz, M., 1986. Catching-up, forging ahead and falling behind. Journal of Economic History, 46(2): 385-406.
Barro, R., 1991. Economic growth in a cross- section of countries. The Quarterly Journal of Economics, 106(2):407-443.
Barro, R.J. and X. Sala-I-Martin, 1992. Convergence. Journal of Political Economy, 100(2): 223-251.
Barro, R.J. and X. Sala-I-Martin, 1995. Technological diffusion, convergence and growth. Economics Working Paper No. 116. Universitat Pompeu Fabra.
Baumol, W.J., 1986. Productivity growth, convergence and welfare: What the long run data show. American Economic Review, 76(5): 1072-1085.
Ben-David, D. and M.B. Loewy, 1997. Free trade, growth, and convergence. Working Paper No. 6095. Cambridge: National Bureau of Economic Research.
Ben–David, D. and A. Kimhi, 2000. Trade and the rate of income convergence. Working Paper 76ur, MBER, Combridge, MA.
Ben –David, D., 1993. Equalizing exchange: Hade liberation and income convergence. Quarterly Journal of Economics, 108: 653, 679.
Ben –David, D., 1996. Trade and convergence among countries. Journal of International Economics, 40: 279- 298.
Bernard, A.B. and S.N. Durlauf, 1995. Convergence in international output. Journal of Applied Econometrics, 10: 97–108.
Bernard, A.B. and S.N. Durlauf, 1996. Interpreting tests of the convergence hypothesis. Journal of Econometrics, 71: 161–173.
Bernard, A.B. and C.I. Jones, 1996. Productivity and convergence across U.S states and industries. Empirical Economics, 21: 113-135.
Coe, D.T. and E. Helpman, 1995. International R&D spillovers. European Economic Review, 39(5): 859- 887.
Dickey, D. and W. Fuller, 1979. Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74: 427-431.
Dollar, D., 1992. Outward oriented developing economies really do grow more rapidly: Evidence from 95 LDCS, 1976- 1985. Economic Development and Cultural Change.
Edwards, 1999. Openness trade liberalisation and growth in developing countries. Journal Economic Literature, 31: 1358-1393.
Galor, O., 1996. Heterogeneity and club convergence in growth models. Brown University.
Gaullier, G., 2003. Trade and convergence: Revisiting Ben-David. CEPII, Working Paper No. 2003-06.
Gross Man, G.M. and E. Helpman, 1991. Quality ladders in the theory of growth. Review of Economic Studies, 58(1): 43- 61.
Grossman, G. and E. Helpman, 1991. Innovation and growth in the global economy. Cambridge (Mass): MIT Press.
Guetat, I. and F. Serranito, 2007. Income convergence within the MENA countries: A panel unit root approach. Quarterly Review of Economics and Finance, 46: 615-706.
Harrison, 1996. Openness and growth, a times- series, cross country analysis for developing countries. Journal of Development Economics, 48(2): 419-447.
Johansen, S., 1988. Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12: 231-254.
Koopmans, T.C., 1965. On the concept of optimal economic growth. The economic approach to development planning, pontifical academia scientiarum. Amesterdam: North Holland Publishing.Co.
Levine, R. and D. Renelt, 1992. A sensitivity analysis of cross –country growth regressions. American Economic Review, 82(4): 942-963.
Lucas, R.E., 1988. On the mecanhanics of economic development. Journal of Monetary Economics, 22(1): 3- 42.
Mankiw, N.G., D. Romer and D.N. Weil, 1992. A contribution to the empiries of economic growth. Quarterly Journal of Economy, 105: 862- 879.
Mendez, R., 1997. Ouverture commerciale et convergence dans un modèle simple de croissance endogene. Annales d’Economie et De Statistiques, (47): 13-38.
Quah, D., 1996. Empirics for economic growth and convergence. European Economic Review, 40: 1353-1375.
Rivera, B., A. Luis and P. Romer, 1991. International trade with endogenous technological change. European Economic Review, 35: 971-1004.
Samuelson, P.A., 1948. International trade and the equalisation of factor prices. Economic Journal, 58(June): 163-184.
Slaughter, M.J., 2001. Trade liberalization and per capita income convergence: A difference-in- difference analysis. Journal of International Economic, 55: 2003- 2228.
Solow, R.M., 1956. A contribution to the theory of economic growth. Quarterly Journal of Economics, 70: 65-94.
Stroomer, C. and D.E.A. Giles, 2003. Income convergence and trade openness: Fuzzy clustering and time series evidence. Department of Economics .University of Victoria. Working Paper EWP 0304.
Winters, A., N. McCulloch and A. McKay, 2004. Trade liberalization and poverty: The evidence so far. Journal of Economic Literature, 17: 72–115.