The Impact of the Multifiber Agreement Phaseout on Unemployment in Tunisia: A Prospective Dynamic Analysis
AbstractUsing a dynamic general equilibrium model, the paper provides a quantitative assessment of the impact of the Multifiber Agreement dismantling on unemployment in Tunisia. The specification of intertemporal behavior of households and firms permits the analysis of the effects of the shock on consumption and investment in the long run. By including a multisectoral model of efficiency wages, the model allows for an endogenous determination of unemployment. The main findings are that unemployment and wage inequality will increase due to the MFA phase out, and that a deeper integration with the EU can soften the negative effects of the shock. --
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Bibliographic InfoPaper provided by University of Goettingen, Department of Economics in its series Center for European, Governance and Economic Development Research Discussion Papers with number 39.
Date of creation: 2005
Date of revision:
Unemployment; dynamic general equilibrium model; efficiency wages; multifiber agreement; Tunisia;
Find related papers by JEL classification:
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
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