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EU-GCC free trade agreement: Adjustments in a factors proportion model for the UAE

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  • Toledo, Hugo

Abstract

The EU-GCC Free Trade Agreement would likely cause price changes across industries with subsequent effect on output and factor price adjustments. With higher levels of trade, the rising income will be redistributed among winner and loser industries and factors of production. This paper simulates the magnitude of these adjustments with a factors proportion model of production and trade for six different labor categories and capital in four sectors of the UAE economy. Results show a large impact on sector specific factors but for mobile factors, the shocks would be smaller suggesting a policy to increase factor mobility in the UAE.

Suggested Citation

  • Toledo, Hugo, 2011. "EU-GCC free trade agreement: Adjustments in a factors proportion model for the UAE," International Review of Economics & Finance, Elsevier, vol. 20(2), pages 248-256, April.
    • Handle: RePEc:eee:reveco:v:20:y:2011:i:2:p:248-256
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    References listed on IDEAS

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    Cited by:

    1. Akay, Gokhan H., 2012. "Trade and factor returns: Empirical evidence from U.S. economy," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 77-86.
    2. Dogan, Can & Akay, Gokhan H., 2016. "Multi-sector specific factors model with two mobile factors," International Review of Economics & Finance, Elsevier, vol. 46(C), pages 136-147.
    3. Naifar, Nader & Al Dohaiman, Mohammed Saleh, 2013. "Nonlinear analysis among crude oil prices, stock markets' return and macroeconomic variables," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 416-431.

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