ABSTRACT
The economic and financial links between the national and international economies are multifaceted and so are the manifestations of economic interdependence. This chapter explores the nature and manifestations of economic interdependence and some of the factors which appear to govern the degree of interdependence between national and world economies. The Arab economies are classified into: primarily oil exporting economies, private sector oriented economies, and public sector oriented economies. The chapter examines links of the Arab economies with the world economy; inter-Arab economic links and policy dependence and interdependence in relation to the world and regional economies. The aspects of inter-Arab economic links briefly explain on: trade, capital movements and attempts at regional integration. For purposes of analysis assume, that the Arab countries succeeds in forging close regional integration consisting in free trade between the Arab countries, free movement of capital and greater policy co-ordination in trade and monetary policies including exchange rates.
