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Trade Integration with Europe, Export Diversification and Economic Growth in Egypt

Author

Listed:
  • Dessus, Sébastien
  • Suwa Eisenmann, Akiko

Abstract

Egypt needs to diversify exports further in order to emerge from its isolation and to draw the maximum advantage from the growth potential offered by trade globalization. To what extent does the bilateral free trade agreement with the European Union encourage the transition from a rentier economy to one of export-led growth? This paper uses a dynamic, calculable, general equilibrium model to assess different scenarios for the Egyptian economy to the year 2010. The authors reach the conclusion that the preferential trade agreement with Europe should facilitate the transition if the increase in trade results in higher Egyptian productivity through technology transfer and pressure from competition. Under these conditions, the agreement would seem to have a similar impact to that which could be expected from unilateral Egyptian trade liberalization, affecting all the country’s trading partners.

Suggested Citation

  • Dessus, Sébastien & Suwa Eisenmann, Akiko, 1998. "Trade Integration with Europe, Export Diversification and Economic Growth in Egypt," CEPR Discussion Papers 1938, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1938
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    Citations

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    Cited by:

    1. Francois, Joseph F. & McQueen, Matthew & Wignaraja, Ganeshan, 2005. "European Union-developing country FTAs: overview and analysis," World Development, Elsevier, vol. 33(10), pages 1545-1565, October.
    2. Thierry Mayer, 2006. "Policy Coherence for Development : A Background paper on Foreign Direct Investment," SciencePo Working papers Main hal-01065640, HAL.
    3. Orecchia, Carlo & Parrado, Ramiro, 2014. "Deployment of new clean technologies in developing countries in a CGE framework: fostering investments in clean and renewable energy," Conference papers 332492, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. repec:hal:wpspec:info:hdl:2441/10184 is not listed on IDEAS
    5. Selwaness, Irène & Zaki, Chahir, 2019. "On the interaction between exports and labor market regulation: Evidence from the MENA countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 24-33.
    6. repec:dgr:rugsom:99c02 is not listed on IDEAS
    7. repec:spo:wpecon:info:hdl:2441/10184 is not listed on IDEAS
    8. Lucke, Bernd & Zotti, Jacopo, 2016. "Macroeconomic effects of the Barcelona Initiative," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 837-854.
    9. Lord, Montague, 2001. "Economic Impact and Implications for Jordan of the U.S.–Jordan Free Trade Agreement," MPRA Paper 41168, University Library of Munich, Germany.
    10. Mohamed Hedi Bchir & Yvan Decreux & Michel Fouquin & Jean-Pierre Cling & Jacques Ould Aoudia, 2003. "L'élargissement : vers un renforcement des relations entre l'Europe et les pays méditerranéens ? suivi d'un commentaire de Jean-Pierre Cling et Jacques Ould Aoudia," Économie et Statistique, Programme National Persée, vol. 363(1), pages 267-301.
    11. repec:spo:wpmain:info:hdl:2441/10184 is not listed on IDEAS
    12. Franco Zallio, 2000. "Deep Integration, EURO-MED Free Trade and the WTO 2000 Negotiations," Working Papers 2014, Economic Research Forum, revised 05 Nov 2000.
    13. Thissen, Mark, 1998. "Two decades of CGE modelling lessons from models for Egypt," Research Report 99C02, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    14. repec:hal:spmain:info:hdl:2441/10184 is not listed on IDEAS

    More about this item

    Keywords

    Computable General Equilibrium Models; Egypt; Export Diversification; Trade Integration;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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