THE IMPACT OF TRADE LIBERALIZATION ON INFLATION IN SELECTED MENA COUNTRIES
Keywords:
Trade Liberalization, Inflation, Trade Openness, MENA Countries, Economic Growth, Globalization, Monetary Policy, Government Expenditure.Abstract
This study examines the impact of trade liberalization on inflation in selected Middle East and North Africa (MENA) countries. As globalization and economic openness have expanded, trade liberalization has become an important policy tool for promoting economic growth and integration into the global economy. However, its effect on inflation remains a subject of debate. Using theoretical and empirical evidence, this paper investigates the relationship between trade openness and inflation, while considering the role of control variables such as money supply and government expenditure. The findings reveal a significant positive relationship between trade liberalization and inflation in the selected MENA countries, suggesting that increased trade openness may contribute to inflationary pressures. In contrast, money supply and government expenditure demonstrate a negative association with inflation. The study concludes that policymakers should balance the benefits of trade liberalization with appropriate monetary and fiscal measures to maintain price stability and sustainable economic growth.
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