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Determinants of Bilateral Trade Flows in Arab Maghreb Union (AMU)

Author Affiliations

  • 1 Department of Economics and Management, Ain TemouchentUniversity, Ain Temouchent, ALGERIA

Int. Res. J. Social Sci., Volume 4, Issue (5), Pages 19-22, May,14 (2015)

Abstract

The study aims to measure the most important determinants of trade flows among Arab Maghreb Union (AMU) group members from 1995to2011 through Gravity Model. The empirical findings show that there exist a positive impact of gross domestic production (GDP) and a negative effect of geographical distance on trade flows, that the exchange rate and tariff rates have no significant effect on export flows. In the contrast, these countries have not yet achieved their aim and should set up efforts by the policy makers to promote intra- trade among Arab Maghreb Union.

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