Intra-Arab trade and their economic integration

The dismantle restrictions and the elimination of trade obstacles have become a common feature in regional trade field. Although many countries in several regions in the world have increased their intra-trade, trade among Arab countries has been a relatively small portion of total their trade. The reasons of the weakness of intra-Arab trade are divided into economic reasons such as variance of GDPs of Arab countries, political reason such as political controversies, and natural reason such as geographical location. Using the gravity model fixed effects regression this paper analysis the determinants of intra-Arab trade during the 1985-2005 period. Despite of existence of possibility for intra-Arab trade expanding, the paper argues that this possibility needs -in addition to other factors– harmonize the economic policies and the procedures of trade implementations among Sub-regional Unions of Arab countries in particular or among all Arab countries overall. The real desire is also required to attain the increasing of intra-Arab trade and then obtain the economic development