As portrayed by (Dogruel and Karahasan) there exists a growing interest in the integration between regional economics and international trade. With the contributions of new economic geography, different dimensions of the obvious regional variation of economic activity and economic growth have been explained on the grounds of importance of location and in terms of the geographic proximity. Thus, the framework demonstrates the fact that identification of the major motivations or obstacles of regions as somehow affecting the decisions of productive units has become an important issue as (Dogruel and Karahasan) explain. As (Dogruel and karahasan) continue, the MENA region consists of economies which have diverse policy preference. A set of models have been constructed and estimated to explore the differentiation of business environment in the MENA region. The findings portray that the growth of world GDP, GDP growth of MENA region, growth of world export volume and growth of MENA trade volume have no substantial effect on the industrial value added growth in the MENA countries. On the other hand, as (Dogruel and Karahasan) continue, coefficients growth in the national export and change in the domestic consumption have been present in all models. As (Dogruel and Karahasan) emphasize financial development which refers to as the change in money supply does not show any sign of significance whereas, the credit taken into account by private sector is considered as one of the most crucial determinants of the improvement in the business environment. Meanwhile, inflation rate which has not been taken as the explanatory variable with the financial development indicators because of possible multi-collinearity problems portray signs of instability for industrial value added (Dogruel and Karahasan). And, in order to be able to have control over the effect of oil, two different models have been recognized. Although oil reserves have no significant effect on the development of the business environment an increase in fuel exports would impose significant effect on the business sector. (Dogruel and Karahasan) conclude by explaining that both domestic and external demands, openness, financial deepening, the regional and global trends , as well as oil production and oil reserves are factors which would affect the business environment significantly. The static and dynamic panel data models which have been computed portray that both the domestic and external demand are the most important reasons for the positive progress present of the business environment. The findings have also demonstrated that the inflation reduces the progress of the business sector.
Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific
Trade has more similarities than differences across regions of the world for three major reasons similar good were traded, geographic location and culture/religion.
"Economic Development. (From the Library)." Government Finance Review 17.6 (Dec 2001): 58(1). General OneFile. Gale. Apollo Library. 19 May 2008 ..
Silva, Julie A. and Robin M. Leichenko. Economic Geography. Vol. 80, No. 3 (Jul., 2004), pp. 261-
Economic growth is the most basic indicator of an economy's health which is the rate at which national income is growing. Economic growth is a rise in what an economy can produce if it is using all its scarce resources. A combination of two goods that can be produced in a country when the available resources are fully and efficiently utilized is called production possibility frontier (PPF). An increase in an economy’s productive potential can be shown by an outward shift in the economy’s PPF. The easiest way to show economic growth is to combine all goods into consumer and capital goods. A shift to the right of a PPF means that an economy has raised its volume to produce.
The political force moved away from the painstakingly and time-consuming technique of multilateral tariff negotiations to smaller regional and bilateral provisions - the Regional Trade Agreement. In these arrangements; members accord preferential treatment , basically agreeing to liberalize the exchange of goods and services amongst each another giving regard to certain trade barriers. RTA is not the first-hand way of trade liberalization though. Initially, when multilateral trade discussions used to happen, two-sided and multiparty FTA”s filled the vacuum. There were restrictions from stringent and premeditated trade arrangements earlier, thus a lot of states are now moving towards freer trade for their own benefits.
CAFTA, the Central America Free Trade Agreement, or commonly known as the Dominican RepublicCentral America Free Trade Agreement (DR-CAFTA), is a free trade agreement. In international trade, free trade is an idealized market model, often stated as a political objective, in which trade of goods and services between countries are not hindered by government imposed tariffs (taxes on imports) or non-tariffs (Wikipedia, 2007).
The dependent variable, which has been extensively used in prior examinations, is rate of growth in gross domestic product per capita. Moreover this research will cover the time range between 1960 and 1990; and the information measuring the dependent variable will be extracted from the World Bank data set. The data source is reliable because it measures the strength and size of a country’s economy of every year within a specified time period, hence allowing this paper to examine the influence that general trends have on growth rates. For the independent measures, I will utilize both qualitative and statistical analysis from previous research (which examines level of education, regime type, comparison of exports and imports, etc.) carried out by government agencies, international organization and scholars.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
The case for regional integration is both simple and irrefutable. First we are small and we need to achieve economies of scale. We need to achieve such economies in markets, production, the mobilisation of regional capital for regional use, university education, science and technology, sea and air transport to mention some areas.
For the smooth functioning of the economy, there is a need for region development since, it minimizes the pressure of inflation within the economy.
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
Trade creation occurs when low cost producers within free trade area replace high cost domestic producers. These agreements create more opportunities for countries to trade with one another by removing the trade barriers and investment. Trade creation allows member countries for a wider selection of goods and services not previously available. They can acquire goods and services at a lower cost after trade barriers due to lowered tariffs or removal of tariffs which will encourage more trade between member countries the balance of money spend from cheaper goods and services, can be used to buy more products and services. Regional economic integration significantly contributes to the relatively high growth rates in the nation. By removing trade barriers between members countries the factor of production can be move
Economic development has a direct relationship with the environment. Whereas economic development is a policy intervention endeavour with aims of economic and social well-being of the people, economic growth is a phenomenon of market productivity and rise in GDP. According to them, the first chain consists of economic growth benefiting human development, since economic growth is likely to lead families and individuals to use their heightened incomes to increase expenditures, which in turn furthers human development. At the same time, with the increased consumption and spending, health, education and infrastructure, systems grow and contribute to economic growth.
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.