"New Regionalism" between "Creating Trade" and "Transforming Development"

Abstract

The aim of this study used to examine how the new regionalization and its impact on trade creation and transformation of the Arab Free Trade Area and the Euro-Mediterranean Partnership, And we chose Algeria as a sample for the study and we measured the net effect of trade on gravity models, International trade flows, including the phenomena of trade creation and transformation; we used the import variable to determine their net effect. The net impact indicators for trade creation were: trade creation, trade transformation, economic distance; Economic indicators were selected: GDP growth, domestic investment, high technology exports index, human development index, we used set of explanatory and complementary indicators represented in the growth of government spending, household consumption, GDP. We applied the method of the fully modified FMOLS and the ARDL method to estimate the study models.