Economic Growth and International Trade in the Mediterranean Area: an Empirical Analysis - Progress in Economics Research

One of the goals of the integration process between EU and MED countries, is the MED countries growth increase. Another goal that the process wants to reach is the increase of intra-area trade by reducing tariffs and non tariffs barriers. The aim of this paper is to verify if a positive relationship between economic growth and international trade in the examined area exist. The empirical evidence (confirmed in this paper) starts from a Johnson model application adapted in the Mediterranean area, by introducing demographic rise. The results of regressions seem to confirm that if the Barcelona integration process goes on, with a constant but continuous increase in trade, Med countries economic growth will also increase. If we exclude from the analysis two countries: Turkey and the Palestinian Authority, we obtain more reliable results.