Journal of Business & Economic Policy

Dynamics of Trade Specialization in Middle East and North Africa (MENA)
Duddy Roesmara Donna, Tri Widodo, Sri Adiningsih

Abstract
This paper examines the dynamics of trade specialization and pattern of comparative advantage in the MENA region and countries for the period 2000 and 2010. An econometric model, Wald test, and the Spearman’s rank correlation are applied. In the MENA region, analysis by industry classification and by country endowment classification indicates that the MENA region shows de-specialization rather than specialization in 2000-2010. Human Capital Intensive Industry and Resource Rich and Labor Importing Country have the most dynamic de-specialization in the region. Human Capital Intensive Industry and Resource Rich and Labor Abundant Country have the most dynamic pattern of comparative advantage in the region. Qatar has the most dynamic de-specialization in all industries, except in Primary Intensive Industry. Saudi Arabia has the most dynamic de-specialization in Primary Intensive Industry. Qatar has also the most dynamic in the pattern of comparative advantage in all industries. By both, industry and country group classifications analysis, all countries in the MENA region have shown de-specialization with different speed, where Qatar has fastest de-specialization and Tunisia has slowest de-specialization.

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