Imperfect Competition, Economies of Scale and Trade Liberalisation in Tunisia - A Comparative Analysis Using a Computable General Equilibrium Model (CGEM)
Within a multi-sectoral general equilibrium framework, we explicitly model either competitive or Cournot oligopolistic commodities market structures. The model is used to assess the impact of trade liberalization on Tunisia economy. We show that the results are different from those obtained with perfect competition in terms of sectors allocations, but also mainly in terms of welfare. It is found that the trade liberalization improves welfare in all cases, and these gains are the most important with oligopoly. The existence of imperfection competition will be beneficial if the local producers profit from trade liberalization to decrease their production prices and to increase their production level. The outcome shows that the traditionally export-oriented sectors will cope with the liberalisation without any problems. In opposition the sectors that are usually more protected against foreign competition like the agricultural sector will suffer. The most unfortunate effects refer to public budget equilibrium. The fiscal reform proves to be an important element of every complementary domestic policy of the commercial liberalization.
Volume (Year): (2003)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.sga-sse.ch/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Markusen, James R. & Venables, Anthony J., 2000.
"The theory of endowment, intra-industry and multi-national trade,"
Journal of International Economics,
Elsevier, vol. 52(2), pages 209-234, December.
- Markusen, James R. & Venables, Anthony J, 1996. "The Theory of Endowment, Intra-Industry and Multinational Trade," CEPR Discussion Papers 1341, C.E.P.R. Discussion Papers.
- James R. Markusen & Anthony J. Venables, 1996. "The Theory of Endowment, Intra-Industry, and Multinational Trade," NBER Working Papers 5529, National Bureau of Economic Research, Inc.
- Jaime de Melo & David Roland-Holst, 1991.
"Industrial Organization and Trade Liberalization: Evidence from Korea,"
in: Empirical Studies of Commercial Policy, pages 287-310
National Bureau of Economic Research, Inc.
- de Melo, Jaime & Roland-Holst, David, 1990. "Industrial organization and trade liberalization : evidence from Korea," Policy Research Working Paper Series 518, The World Bank.
- de Melo, Jaime & Roland-Holst, David, 1990. "Industrial Organization and Trade Liberalization: Evidence from Korea," CEPR Discussion Papers 399, C.E.P.R. Discussion Papers.
- Deardorff, A.V. & Brown, D.K. & Stern, R.M., 1996. "Some Economic Effects of the Free Trade Agreement Between Tunisia and the European Union," Working Papers 385, Research Seminar in International Economics, University of Michigan.
- Mercenier, J., 1992.
"Completing the European Internal Market: A General Equilibrium Evaluation Under Alternative Market Structure Assumption,"
Cahiers de recherche
9208, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Mercenier, J., 1992. "Completing the European Internal Market: a General Equilibrium Evaluation Under Alternative Market Structure Assumption," Cahiers de recherche 9208, Universite de Montreal, Departement de sciences economiques.
- de Melo, Jaime, 1988. "Computable general equilibrium models for trade policy analysis in developing countries: A survey," Journal of Policy Modeling, Elsevier, vol. 10(4), pages 469-503.
- Smith, Alasdair & Venables, Anthony J, 1988.
"Completing the Internal Market in the European Community: Some Industry Simulations,"
CEPR Discussion Papers
233, C.E.P.R. Discussion Papers.
- Smith, Alasdair & Venables, Anthony J., 1988. "Completing the internal market in the European Community : Some industry simulations," European Economic Review, Elsevier, vol. 32(7), pages 1501-1525, September.
- de Melo, Jaime & Panagariya, Arvind & Rodrik, Dani, 1993.
"The new regionalism : a country perspective,"
Policy Research Working Paper Series
1094, The World Bank.
- Harrison, Glenn W & Rutherford, Thomas F & Tarr, David G, 1997. "Quantifying the Uruguay Round," Economic Journal, Royal Economic Society, vol. 107(444), pages 1405-30, September.
- Shantayanan Devarajan & Dani Rodrik, 1989.
"Pro-Competitive Effects of Trade Reform: Results from a CGE Model of Cameroon,"
NBER Working Papers
3176, National Bureau of Economic Research, Inc.
- Devarajan, Shantayanan & Rodrik, Dani, 1991. "Pro-competitive effects of trade reform : Results from a CGE model of Cameroon," European Economic Review, Elsevier, vol. 35(5), pages 1157-1184, July.
When requesting a correction, please mention this item's handle: RePEc:ags:agrarw:31998. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.