International Competitiveness in Services in Some MENA Countries

Jordan - 19 November 2012

This study analyzes the changes in the levels of competitiveness of four major service sectors –Transport, Communications, Travel, and Other Business Services- by using the market share position of a number of MENA countries. The approach we use will measure the competitive position of the selected service sectors, and it also analyzes their evolution based on a methodology similar to the one followed in those studies that tackle the industrial sector. Such an approach allows us to evaluate the world insertion of MENA countries and, given a certain world demand, their position either as a supplier or a consumer of those services. Furthermore, through an empirical analysis we examine the factors explaining the competitive position of the selected MENA countries in the four selected service sectors. Moreover, this study introduces a gravity model that explains the current state of competitiveness of services trade in MENA countries, with the aim of identifying the main determinants that enhance the level of competitiveness in this region.
The study is structured as follows: The first section summarizes the existing literature that addresses trade in services, and it exposes the difficulties involved in the measurement of international competitiveness. Section two develops the descriptive analysis of the competitive position of some MENA countries. Section three illustrates the results of both the competitiveness matrices and the dependent model to find the factors explaining the competitive position of the four selected service sectors. The final section discusses some general conclusions.

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