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The welfare implications of trade liberalization between the Southern Mediterranean and the EU

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  • Patricia Augier
  • Michael Gasiorek

Abstract

The impact on the Southern Mediterranean Countries (SMC) of the current process of trade liberalization with the European Union is explored. The methodology is that of computable general equilibrium modelling under imperfect competition and the model includes ten countries and 11 sectors. This allows for both a cross-country and cross-sectoral analysis of the results. The experiments considered are the full liberalization of tariffs, as well as changes in market access and trade-induced changes in productivity. A key feature of the paper is that the phased introduction of tariff reductions is allowed for as explicitly envisaged in the Agreements. The results show that the process of liberalization may have a substantial, though non-monotonic, impact on the SMC economies in terms of both changes in production and through this on welfare. The welfare impact is potentially very high in particular for the high tariff economies. The sources of the welfare gain tend to derive from perfectly competitive explanations of trade for the high tariff economies, and from imperfectly competitive explanations of trade for the low tariff economies.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 10 ()
Pages: 1171-1190

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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1171-1190

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Cited by:
  1. Cies´lik, Andrzej & Hagemejer, Jan, 2009. "Assessing the Impact of the EU-sponsored Trade Liberalization in the MENA Countries," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 24, pages 343-368.
  2. Kavallari, Aikaterini & Schmitz, P. Michael, 2007. "An Empirical Assessment of Agricultural Trade Policies in the Mediterranean Basin - Regional Effects on the EU Member States," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9395, European Association of Agricultural Economists.
  3. World Bank, 2006. "Fostering Higher Growth and Employment in the Kingdom of Morocco," World Bank Publications, The World Bank, number 7114, July.
  4. Konstadinos Mattas & George Baourakis & Konstantinos Galanopoulos & Fatima El hadad Gauthier & Etienne Montaigne & Michel Petit & Hilel HAMADACHE & Ibrahim Soliman & Ahmed Mashhour & Mohamed Gaber & A, 2012. "A review of the national and international agro-food policies and institutions in the Mediterranean Region [Synthesis]," Working Papers 180949, Institut National de la Recherche Agronomique, France.
  5. Kavallari, Aikaterini & Borresch, Rene & Schmitz, P. Michael, 2006. "Modelling agricultural policy reforms in the Mediterranean basin - Adjustments of AGRISIM," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10074, European Association of Agricultural Economists.
  6. Walkenhorst, Peter & Malouche, Mariem, 2006. "Trade Policy and Export Performance in Morocco," MPRA Paper 23119, University Library of Munich, Germany.
  7. 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.
  8. Nadia Belhaj Hassine & Véronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: a General Equilibrium Analysis," Cahiers de recherche 1022, CIRPEE.
  9. 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.
  10. 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.

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