Economic Integration in MENA: The Global, Regional, and Subregional Integration Indices and Their Dynamic Interactions

Lo Simon M.S.
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Lo Simon M.S.: United Arab Emirates University

Journal of Economic Integration, 2026, vol. 41, issue 2, 195-220

Abstract: We propose a new index based on the gravity model to measure global, regional, and subregional economic integration. Europe, America, Asia, and MENA exhibit different dynamic interactions between these three levels of integration. The MENA region has a distinctive dumbbell integration pattern - strong at the global and subregional levels but weak at the regional level. The panel data cointegration approach reveals that different types of integration are complements but not substitutes. Regional integration has the strongest positive externality in terms of fostering other types of integration. Promoting regionalization is the most efficient policy option.

Keywords: Integration Index; Globalization; Regionalization; Gravity Model; Cointegration Analysis (search for similar items in EconPapers)
JEL-codes: F15 F40 F55 F64 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:022606

DOI: 10.11130/jei.2025026

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