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European and Euro-meditterranean Agreements: same simulation analysis on the effects of the EU trade policy

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Abstract

This paper deals with the long term effects of several important trade policy initiatives implemented by the EU in the last decade: the European Agreements, the Euro-Mediterranean Agreements and the Customs Union with Turkey. The analytical tool is GTAP, a static and perfectly competitive CGE model whose database has been aggregated into 10 regions and 10 industries. On average, liberalisation of manufacturing industries turns out to be welfare creating for the subscribers and slightly damaging for the world economy; the eventual opening of agricultural markets by the EU would improve these results. Income distribution inside the involved areas is only weakly affected by integration; with regard to the EU, return to capital and wages – for both skilled and unskilled labour - tend to appreciate in real terms.

Suggested Citation

  • Piergiorgio Alessandri, 2000. "European and Euro-meditterranean Agreements: same simulation analysis on the effects of the EU trade policy," KITeS Working Papers 110, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jun 2000.
    • Handle: RePEc:cri:cespri:wp110
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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. 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.
    3. Kavallari, Aikaterini & Schmitz, P. Michael, 2008. "Multilateral trade liberalisation and Preference erosion: Effects on the agricultural sector of the EU's Mediterranean Partner Countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44177, European Association of Agricultural Economists.
    4. GAUTHIER Fatima, EL HADAD & Etienne, MONTAIGNE & Michel, PETIT & Hilel, HAMADACHE & Soliman, Ibrahim & Mashhour, Ahmed & Gaber, Mohamed & Ait El Mekki, Akka & El Hindi, Atieh & Thabet, Haitham & Thabe, 2011. "A review of the national and international agro-food policies and institutions in the Mediterranean Region," MPRA Paper 66801, University Library of Munich, Germany.
    5. Kavallari, Aikaterini & Borresch, Rene & Schmitz, P. Michael, 2006. "Modelling agricultural policy reforms in the Mediterranean basin - Adjustments of AGRISIM," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10074, European Association of Agricultural Economists.

    More about this item

    Keywords

    CGE modelling; European enlargement; Free trade agreements;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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