Publications - Working Papers IER SAS

This study examines the development of mutual trade relations between Yemen and member countries of the European Union (EU) and United States of America (USA) during the period of 2000 to 2011. In addition, this study tries to identify the comparative advantage of Yemen relative to EU and USA and the possibilities of increasing the Yemen’s export to the above mentioned trade partners. According to the results of the empirical analysis we found that, Yemen has a comparative advantage in relation with EU and USA in a few of commodities (about 7 to 10 commodities), like petroleum and petroleum products (SITC-33) Fish & crustacean, mollusc & other aquatic invertebrate (SITC-03) and Gas, natural and manufactured (SITC-34) etc. We also found that the trade intensity between Yemen and both the EU and USA is lower than it would be expected, in view of Yemen’s weak exploitation of the preferential system and the advantages provided by the European Union and USA for Least Developing Countries (LDCs) in the frame of General Preference System (GSP) and Everything but Arms Initiative.