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Preferential vs. Full Trade Liberalisation: A Dynamic CGE Model with Heterogeneous Households for Jordan

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  • Omar Feraboli

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    (Chemnitz University of Technology, Germany)

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    Abstract

    This paper deals with the economic effects and the policy implications of trade liberalisation on the Jordanian economy, with emphasis on welfare, income distribution and real wages of heterogeneous households, by using a neoclassical dynamic computable general equilibrium (CGE) model. Specifically the paper assesses the impacts of preferential trade liberalisation with the European Union (EU) and compare them with those brought about by broad and non-discriminatory trade liberalisation.

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    File URL: http://www.rcfea.org/RePEc/pdf/wp08_12.pdf
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    Bibliographic Info

    Paper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 08_12.

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    Date of creation: Mar 2012
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    Handle: RePEc:rim:rimwps:08_12

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    Related research

    Keywords: Dynamic CGE Models; Heterogeneous households; Trade liberalisation; Jordan;

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    1. Karl-Josef Koch & Timo Trimborn & Thomas M. Steger, 2005. "Multi-Dimensional Transitional Dynamics: A Simple Numerical Procedure," Volkswirtschaftliche Diskussionsbeiträge 121-05, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    2. Elena Ianchovichina & Alessandro Nicita & Isidro Soloaga, 2002. "Trade Reform and Poverty: The Case of Mexico," The World Economy, Wiley Blackwell, vol. 25(7), pages 945-972, 07.
    3. Jaume Ventura & Francesco Caselli, 2000. "A Representative Consumer Theory of Distribution," American Economic Review, American Economic Association, vol. 90(4), pages 909-926, September.
    4. Feraboli, Omar & Trimborn, Timo, 2009. "Trade Liberalization and Income Distribution: A CGE Model for Jordan," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 10, Verein für Socialpolitik, Research Committee Development Economics.
    5. Devarajan, Shantayanan & Go, Delfin S., 1998. "The Simplest Dynamic General-Equilibrium Model of an Open Economy," Journal of Policy Modeling, Elsevier, vol. 20(6), pages 677-714, December.
    6. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
    7. Reimer, Jeffrey J., 2002. "Estimating the Poverty Impacts of Trade Liberalization," GTAP Working Papers 1163, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Chatterjee, Satyajit, 1994. "Transitional dynamics and the distribution of wealth in a neoclassical growth model," Journal of Public Economics, Elsevier, vol. 54(1), pages 97-119, May.
    9. Henri C. Ghesquière, 1998. "Impact of European Union Association Agreementson Mediterranean Countries," IMF Working Papers 98/116, International Monetary Fund.
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