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In view of recent calls for an improvement in trade among Arab countries and the need to build a model for the involvement of Arab countries in the global economy, the present study evaluates a set of more than 30 macrolevel variables for economic, social, political, legal, and qualityoflife parameters across more than 120 developing countries. Ninety four countries are then segmented on the basis of factor analysis and cluster analysis. These segments can be used by policymakers and decisionmakers to discern strategic priorities. In addition, Arab policymakers can use these clusters for vertical and horizontal economic integration and for recommendations related to direct investment. This study should provide a strategic framework for building economic blocs and for causal explanations of the variations in country ratings as a proxy for the readiness of Arab countries to join the World Trade Organization WTO.
Journal of Economic and Administrative Sciences – Emerald Publishing
Published: Jun 1, 2008
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