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The Cost of Non-maghreb Achieving the Gains from Economic Integration

Author

Listed:
  • Hedi Bchir, Mohammed

    (Untited Nations)

  • Hammouda, Hakim Ben

    (United Nations Economic Commission for Africa)

Abstract

The purpose of this paper is to estimate the impact of the integration of Maghreb countries into a free trade area on the main macroeconomic aggregates. By using the MIRAGE model and MacMap database, we tested different scenarios to estimate the gains or the potential losses of various plans of trade integration (Free trade area for the Maghreb countries, Custom Union between Maghreb countries, Maghreban Common Market). Our study suggests that the overall gains from liberalizing trade in goods (and removing various regulatory non-tariff barriers in the process) could reach at least USD 350 million. The increase in revenue through increases in production and wages would positively affect welfare levels for Maghreb consumers. The dynamic gains from liberalizing trade ingoods can outstrip the static gains, with productivity improvements as the main driver. Our analysis shows that the creation of a common market is probably the most interesting and efficient option for the Maghreb countries.

Suggested Citation

  • Hedi Bchir, Mohammed & Hammouda, Hakim Ben, 2007. "The Cost of Non-maghreb Achieving the Gains from Economic Integration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 684-722.
    • Handle: RePEc:ris:integr:0412
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    Citations

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    Cited by:

    1. Michael Fuenfzig & Pietro Maggi & Corine Besseling & Anne Winkel & Michael Flickenschild & Przemysław Kowalski & Katarzyna Sidło & Anna Malinowska & Marek Peda & Christopher Hartwell & Patricia Augier, 2021. "Ex-post Evaluation of the impact of trade chapters of the Euro-Mediterranean Association Agreements with six partners: Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia," Working Papers hal-03435264, HAL.
    2. Khalid Sekkat, 2013. "Is There Anything Special With Intra-Arab Capital Flows?," Working Papers 812, Economic Research Forum, revised Dec 2013.

    More about this item

    Keywords

    Free Trade Area; Maghreb; and CGE Model;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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