ABSTRACT
This chapter shows the experience of various regions of the world, but especially of the Arab countries, with respect to regional economic integration to argue the relative merits of multinational joint venture companies of developing countries (MJVs) as effective instruments of regional economic and technical co-operation for development among developing countries. It highlights the importance of transactions costs in international agreements, particularly among developing countries. The chapter argues the advantages of multinational MJVs relative to other instruments of regional economic integration, particularly in terms of reduced transactions costs and greater and more active contributions to the long-term economic development goals of the countries involved. The fact that most MJVs among Arab countries are profit-oriented and motivated provides the necessary inducement for the capital-surplus countries of the region to invest in them. The chapter concludes with a restatement of the principal conclusions and some important reservations.
