The aim of this paper is to compare the effects of total free trade and industrial free trade between Tunisia and the EU on the Tunisian economy. The analysis of this problem uses a computable general equilibrium model (CGEM), and this paper has two simulation sections. The first concerns total trade liberalisation, and the second a partial liberalisation. After performing the simulations, the results show that a trade liberalisation during a reasonable period is an efficient policy for a developing country. Besides, the author suggests that this liberalisation will work better if applied only to a single product or a specific category of products. In other words, a gradual free industrial trade between Tunisia and the EU might be a good strategy for the creation of a free trade area up to 2010.
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Article provided by Faculdade de Economia, Universidade de Coimbra in its journal Notas Económicas.
Volume (Year): (2004) Issue (Month): 20 (December) Pages: 192-218 Download reference. The following formats are available: HTML
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