Effective protection and investment incentives in Egypt and Jordan during the transition to free trade With Europe
This paper assesses the possible impact of a Euro-Mediterranean Agreement (EMA) on Egypt and Jordan and identifies policy options that will increase the benefits of free trade with Europe. The extent to which these countries will benefit from an EMA depends greatly on the investment response and thus on improvements in the investment climate. The latter will be determined by many factors. Three that can be affected by an EMA and are emphasized are the modalities of the tariff reduction strategy that will be pursued, the extent to which transaction costs are reduced, and upgrading the quality and lowering the costs of intermediate service inputs through greater competition. Many of the policy and institutional changes that are required are not or only in part subject to the coverage of the EMA.
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- Corden, W.M., 1984. "The normative theory of international trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 2, pages 63-130 Elsevier.
- Carsten Kowalczyk, 1990. "Welfare and Customs Unions," NBER Working Papers 3476, National Bureau of Economic Research, Inc.
- Rutherford, Thomas F. & Rutstrom, E.E. & Tarr, David, 1993. "Morocco's free trade agreement with the European community : a quantitative assessment," Policy Research Working Paper Series 1173, The World Bank.
- Franz Gehrels, 1956. "Customs Union from a Single-Country Viewpoint," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 61-64.
- Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
- Kowalczyk, C. & Wannacott, R.J., 1992. "Hubs and Spokes , and Free Trade in the Americas," UWO Department of Economics Working Papers 9209, University of Western Ontario, Department of Economics.
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