ABSTRACT
This chapter examines globalization and regionalization as the twin elements of spatial market expansion each creating an economic ambience to the other and resulting in ever expanding ripples of developmental benefits. It analyses the theoretical repercussion of rejecting or accepting the hypothesis and examines the logic of regionalization in terms of a strategic approach; one of pursuing globalization through regional strategic alliance or through a sole venture. The chapter discusses the definition of the Middle East and the Arab Countries as regions; it also describes the geographic focus along with a broad discussion of the basis of their regionalization. It presents econometric analysis, describing the data, model specification and estimation results and discusses important policy implications and recommendations. The chapter provides applied international trade analysis to study the issue of the globalization of Arab economies. The econometric model in the chapter uses well-established behavioral relationships in the process of globalization.
