IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/333444.html

Impact of the implementation of the African Continental Free Trade Area (AfCFTA) on the Algerian economy

Author

Listed:
  • Ouala, Samira

Abstract

The main aim of this paper is to assess the unilateral impact of the establishment of the African Free Trade Area on the Algerian economy. Therefore, we used a computable general equilibrium model, applied on an Algerian social accounting matrix from 2018. In fact, the analysis of the impact of this agreement is based on two simulations: the first consists of evaluating the elimination of half the tariff barriers, while the second simulation is devoted to the total elimination of tariff barriers. The impact study is measured on growth, income, employment and internal and external balance. Where, trade liberalization in both scenarios has a neuter effect on GDP. Furthermore, trade increases in all scenarios, increasing import bills which increase considerably from the African zone. Moreover, the simulation, causes a decrease in the State’s revenues. Hence, the government deficit in relation to GDP would increase in the both scenarios. Finally, the impact on welfare, shows a marginal gain in household welfare.

Suggested Citation

  • Ouala, Samira, 2022. "Impact of the implementation of the African Continental Free Trade Area (AfCFTA) on the Algerian economy," Conference papers 333444, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333444
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/333444/files/11600.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
    2. repec:fth:prinin:343 is not listed on IDEAS
    3. David Card, 1995. "The Wage Curve: A Review," Working Papers 722, Princeton University, Department of Economics, Industrial Relations Section..
    4. David Card, 1995. "The Wage Curve: A Review," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 285-299, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Georges, Patrick & Mérette, Marcel & Zhang, Qi, 2011. "Assessing the Cost of Post-9/11 Security Measures and the Impact of a North American Security Perimeter - A Computable General Equilibrium Analysis," Conference papers 332126, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Joan Daouli & Michael Demoussis & Nicholas Giannakopoulos & Ioannis Laliotis, 2017. "The wage curve before and during the Greek economic crisis," Empirical Economics, Springer, vol. 52(1), pages 59-77, February.
    3. Baltagi, Badi H. & Blien, Uwe & Wolf, Katja, 2009. "New evidence on the dynamic wage curve for Western Germany: 1980-2004," Labour Economics, Elsevier, vol. 16(1), pages 47-51, January.
    4. Baltagi, Badi H. & Rokicki, Bartlomiej, 2014. "The spatial Polish wage curve with gender effects: Evidence from the Polish Labor Survey," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 36-47.
    5. López Enciso, Enrique & Ramírez Giraldo, María Teresa (ed.), 2011. "Formación de precios y salarios en Colombia, tomo II," Books, Banco de la Republica de Colombia, volume 2, number 2011b-04, June.
    6. Effrosyni Adamopoulou & Ernesto Villanueva, 2020. "Wage Determination and the Bite of Collective Contracts in Italy and Spain: Evidence From the Metalworking Industry," CRC TR 224 Discussion Paper Series crctr224_2020_176, University of Bonn and University of Mannheim, Germany.
    7. Iara, Anna & Traistaru, Iulia, 2004. "How flexible are wages in EU accession countries?," Labour Economics, Elsevier, vol. 11(4), pages 431-450, August.
    8. Inmaculada Garcia-Mainar & Victor Montuenga-Gomez, 2003. "The Spanish Wage Curve: 1994-1996," Regional Studies, Taylor & Francis Journals, vol. 37(9), pages 929-945.
    9. Bossler, Mario & Popp, Martin, 2024. "Labor Demand on a Tight Leash," IZA Discussion Papers 16837, IZA Network @ LISER.
    10. Badi H. Baltagi & Yusuf Soner Başkaya, 2022. "Spatial wage curves for formal and informal workers in Turkey," Journal of Spatial Econometrics, Springer, vol. 3(1), pages 1-24, December.
    11. David G. Blanchflower & Andrew J. Oswald, 2005. "The Wage Curve Reloaded," NBER Working Papers 11338, National Bureau of Economic Research, Inc.
    12. Verdugo, Gregory, 2016. "Real wage cyclicality in the Eurozone before and during the Great Recession: Evidence from micro data," European Economic Review, Elsevier, vol. 82(C), pages 46-69.
    13. Buscher, Herbert S., 2003. "Gibt es eine Lohnkurve in den neuen Bundesländern? (Is there a wage curve in eastern German?)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 461-475.
    14. Nabil Annabi & Maxime Fougère & Simon Harvey, 2009. "Inter‐temporal and Inter‐industry Effects of Population Ageing: A General Equilibrium Assessment for Canada," LABOUR, CEIS, vol. 23(4), pages 609-651, December.
    15. Badi H. Baltagi & Bartlomiej Rokicki & Kênia Barreiro Souza, 2017. "The Brazilian wage curve: new evidence from the National Household Survey," Empirical Economics, Springer, vol. 53(1), pages 267-286, August.
    16. Buscher, Herbert S., 2003. "Gibt es eine Lohnkurve in den neuen Bundesländern? (Is there a wage curve in eastern German?)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 461-475.
    17. Baltagi, Badi H. & Blien, Uwe & Wolf, Katja, 2000. "The East German wage curve 1993-1998," Economics Letters, Elsevier, vol. 69(1), pages 25-31, October.
    18. Fingleton, Bernard & Palombi, Silvia, 2013. "Spatial panel data estimation, counterfactual predictions, and local economic resilience among British towns in the Victorian era," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 649-660.
    19. Bernard Fingleton & Simonetta Longhi, 2013. "The Effects Of Agglomeration On Wages: Evidence From The Micro-Level," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 443-463, August.
    20. Alberto Alonso & Cristina Echevarria & Kien C. Tran, 2004. "Long‐Run Economic Performance and the Labor Market," Southern Economic Journal, John Wiley & Sons, vol. 70(4), pages 905-919, April.

    More about this item

    Keywords

    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:333444. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.