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Some Economic Effects of the Free Trade Agreement Between Tunisia and the European Union

Author

Listed:
  • Deardorff, A.V.
  • Brown, D.K.
  • Stern, R.M.

Abstract

We use a special constructed version of the Michigan Brown-Deardorff-Stern (BDS) Computational General Equilibrium (CGE) Model of World production and Trade to estimate the potential economic effects on the Tunisian economy that may result from the free trade agreement (FTA) between Tunisia and the European Union (EU) that was concluded in July 1995. We find that the static welfare benefits for Tunisia of the FTA range from slightly negative to somewhat positive, depending on what is assumed about intersectoral capital mobility in Tunisia.

Suggested Citation

  • Deardorff, A.V. & Brown, D.K. & Stern, R.M., 1996. "Some Economic Effects of the Free Trade Agreement Between Tunisia and the European Union," Working Papers 385, Research Seminar in International Economics, University of Michigan.
  • Handle: RePEc:mie:wpaper:385
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    Cited by:

    1. Arce, Rafael de & Mahia, Ramón, 2000. "A Euro-Mediterranean Agricultural Trade Agreement: Benefits for the South and Costs for the EU," MPRA Paper 12721, University Library of Munich, Germany, revised 2001.
    2. 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.
    3. Patricia Augier & Michael Gasiorek, 2003. "The welfare implications of trade liberalization between the Southern Mediterranean and the EU," Applied Economics, Taylor & Francis Journals, vol. 35(10), pages 1171-1190.
    4. Alessandrini, Sergio & Resmini, Laura, 2000. "FDI in the Mediterranean Region: a Comparison with CEE Experience," MPRA Paper 26103, University Library of Munich, Germany.
    5. Garcia Alvarez-Coque, Jose-Maria & Martinez-Gomez, Victor & Villanueva, Miquel, 2006. "Modelling Euro-Mediterranean Agricultural Trade," Working Papers 18875, TRADEAG - Agricultural Trade Agreements.
    6. DeRosa, Dean A., 1997. "Agricultural trade and rural development in the Middle East and North Africa: recent developments and prospects," Policy Research Working Paper Series 1732, The World Bank.
    7. Konan, Denise Eby & Van Assche, Ari, 2007. "Regulation, market structure and service trade liberalization," Economic Modelling, Elsevier, vol. 24(6), pages 895-923, November.
    8. Ferjani, Ali, 2003. "Imperfect Competition, Economies of Scale and Trade Liberalisation in Tunisia - A Comparative Analysis Using a Computable General Equilibrium Model (CGEM)," Agrarwirtschaft und Agrarsoziologie/ Economie et Sociologie Rurales, Swiss Society for Agricultural Economics and Rural Sociology, issue 1.
    9. Kavallari, Aikaterini & Schmitz, P. Michael, 2010. "Preference erosion effects on the agricultural sector of the EU’s Mediterranean Partner Countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(2), June.
    10. Dennis, Allen, 2006. "The impact of regional trade agreements and trade facilitation in the Middle East and North Africa region," Policy Research Working Paper Series 3837, The World Bank.
    11. Iván Martín, 2004. "La inversión extranjera directa en los países del Maghreb en el marco de la Asociación Euromediterránea: ¿el eslabón perdido?," International Trade 0405001, EconWPA.

    More about this item

    Keywords

    ECONOMIC MODELS ; ECONOMIC EQUILIBRIUM ; INTERNATIONAL TRADE;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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