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A CGE Assessment of FTA Between Tunisia and the EU Under Oligopolistic Market Structures

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  • Chatti Rim

    ()
    (ESSEC; URECA)

Abstract

In this paper, the impact of removing all Tunisian tariffs on imports from the EU, while maintaining protection on imports from the rest of the world, is evaluated using computable general equilibrium (CGE) models. Both competitive and Cournot oligopolistic commodities market structures with and without barriers to entry and exit are considered. It is found that a free trade agreement (FTA) improves welfare in all cases, with maximum gains under oligopoly and free entry and exit. At the sectoral level, the FTA benefits different industries at the expense of agriculture and services, which are relatively intensive in primary factors of production.

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File URL: http://www.degruyter.com/view/j/rmeef.2003.1.2/rmeef.2003.1.2.1006/rmeef.2003.1.2.1006.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Review of Middle East Economics and Finance.

Volume (Year): 1 (2003)
Issue (Month): 2 (August)
Pages: 1-30

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Handle: RePEc:bpj:rmeecf:v:1:y:2003:i:2:n:1

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Web page: http://www.degruyter.com

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Cited by:
  1. Kavallari, Aikaterini & Schmitz, P. Michael, 2010. "Preference erosion effects on the agricultural sector of the EU’s Mediterranean Partner Countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(2), June.
  2. KavallarI, A. & Schmitz, P. M., 2010. "Preference erosion effects on the agricultural sector of the EU’s Mediterranean Partner Countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(2), June.
  3. Kavallari, Aikaterini & Schmitz, P. Michael, 2008. "Multilateral trade liberalisation and Preference erosion: Effects on the agricultural sector of the EU's Mediterranean Partner Countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44177, European Association of Agricultural Economists.

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