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Impact of European Union Assocation Agreements on Mediterranean Countries

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  • Henri C. Ghesquière

Abstract

By establishing free trade for industrial products in 12 years, the European Union’s Association Agreements with countries in the Mediterranean region seek to promote accelerated economic growth. This paper reviews the literature and evaluates the economic benefits and costs for Tunisia, Morocco, Lebanon, Egypt, and Jordan. It concludes that the benefits could be substantial, but only if accompanied by deep supplementary reforms, including extending trade liberalization to services and agriculture and on a multilateral basis, improving the environment for foreign direct investment, ensuring an adequate fiscal and exchange rate policy response, and strengthening European Union assistance.

Suggested Citation

  • Henri C. Ghesquière, 1998. "Impact of European Union Assocation Agreements on Mediterranean Countries," IMF Working Papers 98/116, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:98/116
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    Citations

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    Cited by:

    1. Youssef Chahed & Sophie Drogué, 2003. "Incidence du processus multilatéral sur la viabilité des accords préférentiels: le cas euro-méditerranéen," Économie rurale, Programme National Persée, vol. 276(1), pages 3-16.
    2. Bernd LUCKE & Beatriz GAITAN S. & Jacopo ZOTTI, "undated". "Assessing Economic and Fiscal Reforms in Lebanon. A Dynamic CGE Analysis with Debt Constraints," Middle East and North Africa 330400041, EcoMod.
    3. Juliane Brach, 2006. "Ten Years after: Achievements and Challenges of the Euro-Mediterranean Economic and Financial Partnership," GIGA Working Paper Series 36, GIGA German Institute of Global and Area Studies.
    4. Feraboli, Omar, 2011. "Preferential vs. Full Trade Liberalisation: A Dynamic CGE Model with Heterogeneous Households for Jordan," Proceedings of the German Development Economics Conference, Berlin 2011 26, Verein für Socialpolitik, Research Committee Development Economics.
    5. FERABOLI Omar, "undated". "A Dynamic Analysis of Jordan’s Trade Liberalisation," EcoMod2003 330700052, EcoMod.
    6. Omar Feraboli, 2012. "Preferential vs. Full Trade Liberalisation: A Dynamic CGE Model with Heterogeneous Households for Jordan," Working Paper series 08_12, Rimini Centre for Economic Analysis.
    7. Omar FERABOLI, "undated". "A Dynamic Multisectoral Analysis of Jordan's Trade Liberalisation," EcoMod2004 330600050, EcoMod.
    8. Baccini, Leonardo, 2010. "Explaining formation and design of EU trade agreements: the role of transparency and flexibility," LSE Research Online Documents on Economics 45565, London School of Economics and Political Science, LSE Library.
    9. Anja Zorob, 2007. "The Potential of Regional Integration Agreements (RIAs) in Enhancing the Credibility of Reform: The Case of the Syrian-European Association Agreement," GIGA Working Paper Series 51, GIGA German Institute of Global and Area Studies.

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