Trade integration of Algeria in globalization: an approach by trade affinities

Intégration de l’Algérie dans la globalisation: une approche par les affinités commerciales

Lamara Hadjou
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Lamara Hadjou: Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, UM1 - Université Montpellier 1

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Abstract: In this paper, we propose an analysis of the degree of trade integration of Algeria in the context of globalization. This is mainly through the use of trade intensity index that we measure the relative affinities of Algeria with each of its partners. We decline these relationships by type of trade (import or export) and by type of product. In all cases, a diachronic approach allows to trace the development of trade relations of Algeria since the 1970s with particular emphasis on the last ten years. The notion of commercial affinity really refers to the question of the role of close relationships and their impact on the direction of trade flows. In traditional models of international trade, local variables are rarely taken into account. It is as if the comparative advantages and economies of scale are the only factors that determine the type of products traded and geographical orientation. But the profusion of recent studies mobilizing the gravity model puts more light on the invisible factors of international trade. Through the indicator of affinities, we show that the Algerian foreign trade is governed by a quite remarkable close relations and this does not seem to wane over time. While in absolute terms the Algerian trade tends to diversify with new partners such as China, South Korea, Turkey and India, in relative terms, the proximity relations prevail.

Keywords: theory of trade; commercial affinity of Algeria; globalization (search for similar items in EconPapers)
Date: 2012-05-16
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Published in International Conference for Economic, Business, and Financial Challenges in MENA & GCC Countries, International Society Journals of Science and Education (ISJSE). Sweileh, INT., May 2012, Dead Sea, Jordan

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02805764

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