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Economic Integration, Market Structure, and Growth Dynamics: Implications for Morocco's Free Trade Agreement with the European Union

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  • Elbehri, Aziz
  • Hertel, Thomas

Abstract

In this paper, some major modifications are made to the existing GTAP structure and database to incorporate a long-run closure in which income earned on endowment commodities accrues to the owners of those endowments. This closure assumes that in the long run all economies grow at a common steady-state rate. In order to ensure valid comparative statics a steady-state database is created in which all economies grow at this common steady-state rate. Once these modifications have been made, the long-run effects of Asia-Pacific trade liberalisation are simulated. It is found that foreign ownership of assets does have a significant effect on the projected outcome of Asia-Pacific trade liberalisation.

Suggested Citation

  • Elbehri, Aziz & Hertel, Thomas, 1999. "Economic Integration, Market Structure, and Growth Dynamics: Implications for Morocco's Free Trade Agreement with the European Union," Conference papers 330888, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330888
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    References listed on IDEAS

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