Title:	Regional Integration and Internal Reforms in the Mediterranean Area
Authors:	Sébastien Dessus and Akiko Suwa
Keywords:	Regional Integration
Issue Date:	2000
Publisher:	OECD
Description:	This study examines the relative importance of domestic obstacles to regional integration that are inherent in many developing countries, including persistent fiscal deficits and labour market rigidities. By applying an economy-wide policy simulation model to two countries, Tunisia and Egypt, the authors demonstrate that successful regional integration requires maintaining macroeconomic equilibrium in the short term, and economic restructuring and investment promotion over the longer term. The findings — which identify specific adjustments in each country — suggest that a key to the success of the regional integration process is a parallel implementation of domestic reforms on the part of developing countries, which is necessary to realise productivity gains associated with foreign trade and direct investment. Seen from this angle, the Euro-Mediterranean agreements are expected to play the role of “guarantor” for partner countries to implement domestic reforms. This is largely because of the Agreements’ political provisions aimed at regional security and stability and their institutional and financial arrangements aimed at binding together both sides of the Mediterranean.
URI:	http://10.6.20.12:80/handle/123456789/46493
ISBN:	92-64-17675-6
Appears in Collections:	Regional and Local Development Studies

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