Strengthening China's and India's Trade and Investment Ties to the Middle East and North Africa

The spectacular economic rise of China and India over the past two decades has accelerated their trade with Africa, Latin America, and the Middle East and North Africa (MENA). Their demands for oil, gas, and other natural resources have been driving new relationships with MENA countries based not only on energy but also on trade, investment, and political ties. Indeed, Dubai has become the center of a new Silk Road, the intersection where people, capital, and ideas meet. And while the financial crisis that hit global markets in 2008 has placed downward pressure on growth, these new relationships are likely to deepen in the coming years. The report's main messages are as follows: a) demand for energy from China and India is expected to increase substantially in the future, thus greatly benefiting oil producing countries in the MENA region; b) the oil exporters in the Gulf have laid big bets on economic diversification and knowledge enterprises, bets they might win, but with lots of risk along the way. Oil price volatility may threaten the sustainability of the recent expansion; and c) the growth of China and India offers new market opportunities for the countries in MENA. Besides energy, potential opportunities, for fertilizers, petrochemicals, crude materials, agricultural products, and a number of manufactured goods where MENA has strong comparative advantages, remain unexploited.

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Bibliographic Details
Main Author: Pigato, Miria
Language:English
Published: World Bank 2009
Subjects:ADJUSTMENT ASSISTANCE, AGREEMENT ON TRADE, AGRICULTURAL COMMODITIES, AGRICULTURAL PRODUCTS, AGRICULTURE, APPAREL, APPAREL PRODUCTS, BILATERAL AGREEMENTS, BILATERAL COOPERATION, BUSINESS ENVIRONMENT, CAPITAL FLOWS, CAPITAL GOODS, CAPITAL OUTFLOWS, CAPITAL SURPLUSES, CHANGES IN TRADE, COMMODITY, COMMODITY PRICES, COMMUNICATION, COMMUNICATION TECHNOLOGY, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPETITION, COMPETITION POLICY, COMPETITIVE PRESSURES, COMPETITIVENESS, CONSUMER PRICES, CONSUMERS, CONSUMPTION, CONSUMPTION RATES, COPYRIGHT CLEARANCE, COPYRIGHT CLEARANCE CENTER, DEMAND, DEMOGRAPHIC, DEVELOPING COUNTRIES, DEVELOPMENT, DEVELOPMENT POLICIES, DOMESTIC DEMAND, DOMESTIC ECONOMIES, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC PRODUCERS, DOMESTIC PRODUCTION, DOUBLE TAXATION, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC INTEGRATION, ECONOMIC POWER, ECONOMIC RELATIONS, ECONOMIC STRUCTURE, ECONOMIES OF SCALE, ENERGY EXPORTS, ENERGY RESOURCES, EQUITY, EXPORT DIVERSIFICATION, EXPORT GROWTH, EXPORT MARKET, EXPORT MARKETS, EXPORT OPPORTUNITIES, EXPORT PERFORMANCE, EXPORT PRICES, EXPORT SHARE, EXPORT VOLUMES, EXPORTS, EXTERNALITIES, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL SECTOR, FINANCIAL SUPPORT, FISCAL DEFICITS, FORECASTS, FOREIGN COMPETITION, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENTS, FOREIGN INVESTORS, FOREIGN MARKETS, FREE TRADE, FREE TRADE AGREEMENT, FUTURE, GDP, GDP PER CAPITA, GEOGRAPHIC DISTRIBUTION, GLOBAL CAPITAL, GLOBAL CAPITAL FLOWS, GLOBAL COMPETITION, GLOBAL MARKET, GLOBAL MARKETS, GLOBAL STANDARDS, GLOBAL TRADE, GLOBAL TRADE ANALYSIS, GOODS, GOVERNANCE, GOVERNMENT SUBSIDIES, GROSS DOMESTIC PRODUCT, GROWTH RATES, HUMAN CAPITAL, IMPORT DUTIES, IMPORT MARKETS, IMPORT PRICES, IMPORT PROTECTION, INCOMES, INDUSTRIAL PRODUCTS, INDUSTRIAL SECTOR, INDUSTRIALIZATION, INPUTS, INSTITUTIONAL INFRASTRUCTURE, INTEREST, INTERMEDIATE INPUTS, INTERNATIONAL INVESTORS, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, INVENTORY, INVESTMENT, INVESTMENT FLOWS, INVESTMENT TREATIES, INVESTOR, JOB CREATION, KNOWLEDGE SPILLOVERS, LABOR MARKETS, LIBERALIZATION, LIFE EXPECTANCIES, MACROECONOMIC CONSEQUENCES, MACROECONOMIC STABILITY, MANUFACTURING INDUSTRIES, MARKET ACCESS, MARKET PENETRATION, MARKET PRICE, MARKET SHARE, MARKET SHARES, MARKETS, MULTILATERAL NEGOTIATIONS, NATIONAL INCOME, NATURAL RESOURCES, NET EXPORTERS, NEW MARKET, NEW MARKET OPPORTUNITIES, NEW MARKETS, NEW PRODUCTS, OIL EXPORTERS, OIL IMPORTS, OIL PRICE, OIL PRICES, OIL REVENUES, OPENNESS, OUTCOMES, OUTPUT, OUTSOURCING, PATTERN OF SPECIALIZATION, PORTFOLIO, POWER PARITY, PREFERENTIAL AGREEMENTS, PREFERENTIAL MARKET ACCESS, PRICE VOLATILITY, PRICES, PRIMARY GOODS, PRODUCTION, PRODUCTION STRUCTURES, PRODUCTIVITY GROWTH, PURCHASING POWER, RAPID ECONOMIC GROWTH, RAPID GROWTH, RATE OF GROWTH, REAL ESTATE, REGIONAL INTEGRATION, REGIONAL TRADE, REGIONAL TRADE AGREEMENTS, REGIONAL TRADE INTEGRATION, REGRESSION ANALYSIS, REGULATORY ENVIRONMENT, REGULATORY FRAMEWORK, REGULATORY REGIME, REGULATORY REQUIREMENTS, REPUTATION, RULES OF ORIGIN, SECURITY, SHARE OF WORLD EXPORTS, SPECIALIZATION, STATISTICAL ANALYSIS, TARIFF, TARIFF BARRIERS, TARIFFS, TAXATION, TECHNOLOGY TRANSFERS, TELECOMMUNICATIONS, TERMS OF TRADE, THEORY, TOTAL FACTOR PRODUCTIVITY, TRADE, TRADE AGREEMENT, TRADE AGREEMENTS, TRADE BARRIERS, TRADE DATA, TRADE DIVERSION, TRADE FLOWS, TRADE LOGISTICS, TRADE MODELS, TRADE PATTERNS, TRADE POLICIES, TRADE POLICY, TRADE PROTECTION, TRADE RELATIONS, TRADE SHOCKS, TRADITIONAL MARKETS, TRANSACTION COSTS, TRANSACTIONS COSTS, TRENDS, UNEMPLOYMENT, UNFAIR COMPETITION, UNSKILLED LABOR, VALUE, VALUE OF IMPORTS, WAGES, WEALTH, WELFARE, WORLD DEVELOPMENT INDICATORS, WORLD ECONOMY, WORLD MARKETS, WORLD PRICES, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20090511010953
https://hdl.handle.net/10986/2626
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