ABSTRACT
This chapter attempts to assess the relationship between economic interdependence and national sovereignty as revealed by the case of the Arab states. It discusses the Arab countries economic interdependence at the structural and policy levels, and in both the global and the regional dimensions. The chapter examines the nature and manifestations of economic interdependence and the factors which influence it with special emphasis on policy interdependence. The economic and financial links between the national and international economies are multifaceted and so are the manifestations of economic interdependence. The capacity of the domestic economy to support self-sustained development on its own is expected to influence its degree of reliance on international trade. Economic interdependence is a fundamental phenomenon of the contemporary world and for most, if not all, countries economic progress is hardly possible independent of the world economy except at unacceptable economic and social costs.
