Download Product integration and disintegration of

Comments on the paper Product integration and disintegration of
North African countries into the European Union
(Laura Márquez-Ramos, Inmaculada Martínez Zarzoso and Sami Bensasi)
Three points:
1. To develop a theoretical framework → Not really, just theoretical conjectures.
2. Whether North African Countries have become more integrated into regional production
networks with the Euro Mediterranean process. But it seems that you mainly analyze
exports of EU countries related to imports from North African countries in the same
sector. You probably need an input-output table.
3. Whether the effect of Euro Mediterranean agreements may have consequences on the
dislocation of production. Where is this analysis? I can´t find it. Additionally you say that
the relationship is ambiguous.
You assume that intermediate goods are abundant in "ordinary labour" → This is quite
questionable. In what stage of the product life cycle are we? It depends on the product we are
analyzing . I am not really sure if the introduction of the hightech dummy is the solution.
Data → disaggregated exports of manufactures but you do not run sectoral regressions.
1−σ
Theoretical gravity equation:
(A. and W, 2003)
yi y j  tij 
xij =


yw  Pi Pj 
I think it is necessary to explain better the inclusion of the following variables in the
gravity equation:
• If data are at the sectoral level: sector VA instead of GDP.
• Inclusion of differences in per capita GDP.
• Transport cost.
•"Revealed comparative advantage“.
• Import in intermediate goods: estimation.
You have also to include:
• Colonial ties.
• Country-year dummies
• Preferential trade agreements
Results: The coefficient of the hightech dummy is against intuition in the 3 regressions.