The Impact of Free Trade on GDP per Capita: The GCC Perspective

Free trade increases overall world production of goods and services is a positive sum game in which all participating countries realize economic gains ,which suggested the theory comparative advantage. Vast literature also uses cross-country regressions to search for empirical linkages between income. However, research Gulf Cooperation Council (GCC) context remains limited; this study an attempt fill gap by determining correlation freedom GDP per capita six GCC over period 13 years (1999-2012). The evaluation data from demonstrates strong KSA UAE’s level (according its Trade Freedom Index) capita. Exceptions trend taking into consideration different sizes (economically population) are Kuwait, Bahrain, Oman, Qatar, as these nations have experienced systems barriers. A cross-section regression models concludes that convergence hypothesis supported their unique repression tends constrain liberalization index influence on growth.