Working Papers

Incentives for Economic Integration in the Middle East

Publication Number: ECESWP5-E&A

December, 1996

Author : Ahmed Galal

Type : Working Papers

This paper is an Egyptian perspective on the economic and political incentives for regional integration and examines whether EU trade agreements will stimulate liberalization and promote trade in the region, particularly the Israel/Palestine/Jordan triad. It assesses current incentives and prospects for regional integration. It concludes that Egypt has limited incentives to integrate now. Future regional integration prospects are brighter. Egypt is about to sign an EU partnership agreement, and wants to attract FDI. Both will bring reforms at home and pressure for regional integration to allow access to larger markets, optimize locations across borders, and capitalize on economies of scale.