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The Partial and General Equilibrium Effects of the Greater Arab Free Trade Agreement

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  • Zouheir El-Sahli

Abstract

The Greater Arab Free Trade Agreement (GAFTA) is a regional trade agreement among the Arab countries. We incorporate recent advances in the literature to investigate the partial and general equilibrium effects of GAFTA. The partial equilibrium estimates suggest that GAFTA had a positive and significant effect on bilateral trade of around 40% in 1998 and 61% after the phasing out of tariffs. The general equilibrium analysis suggests that the welfare effects of the agreement are mostly negligible. The results highlight that deeper integration among the Arab countries is imperative to bring about further welfare benefits to the member states.

Suggested Citation

  • Zouheir El-Sahli, 2023. "The Partial and General Equilibrium Effects of the Greater Arab Free Trade Agreement," The International Trade Journal, Taylor & Francis Journals, vol. 37(2), pages 185-199, March.
    • Handle: RePEc:taf:uitjxx:v:37:y:2023:i:2:p:185-199
    DOI: 10.1080/08853908.2021.1962439
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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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