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Is the End of the MFA a Threat?

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  • Mohamed Ali Marouani

Abstract

The end of the Multifiber Agreement in January, 2005 had a negative impact on the apparel industry of regional exporters, but the effects were weaker than expected. Using a dynamic general equilibrium model, the article provides a prospective assessment of the impact on Tunisia of the phase out of the MFA, and of the agreement which manages the rate of growth of Chinese clothing exports to Europe, until the end of 2007. The main findings are an increase in unemployment and wage inequality but no significant effects on the main macroeconomic variables, if the exchange rate management takes into account this shock.

Suggested Citation

  • Mohamed Ali Marouani, 2009. "Is the End of the MFA a Threat?," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 99-110, February.
    • Handle: RePEc:bla:rdevec:v:13:y:2009:i:1:p:99-110
    DOI: 10.1111/j.1467-9361.2008.00465.x
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    References listed on IDEAS

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    1. Walsh, Frank, 1999. "A Multisector Model of Efficiency Wages," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 351-376, April.
    2. Devarajan, Shantayanan & Go, Delfin S. & Hongyi Li, 1999. "Quantifying the fiscal effects of trade reform," Policy Research Working Paper Series 2162, The World Bank.
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    6. Mohamed Ali Marouani, 2004. "Effets de l’Accord d’association avec l’Union européenne et du démantèlement de l’Accord Multifibres sur l’emploi en Tunisie : Une analyse en équilibre général intertemporel," Working Papers DT/2004/01, DIAL (Développement, Institutions et Mondialisation).
    7. Yazid Dissou, 2002. "Dynamic Effects in Senegal of the Regional Trade Agreement Among UEMOA Countries," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 177-199, February.
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    Cited by:

    1. Saibal Kar & Mausumi Kar, 2015. "Liberalized trade policy and inequality: Evidence from Post-Multi-Fibre Arrangement India and some theoretical issues," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).
    2. Stampini Marco & Verdier-Chouchane Audrey, 2011. "Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," Review of Middle East Economics and Finance, De Gruyter, vol. 7(2), pages 1-35, September.
    3. Mausumi Kar & Saibal Kar, 2017. "Multi Fibre Arrangement and Wage Inequality: Firm and State-level Evidence from India and a Theoretical Model," The World Economy, Wiley Blackwell, vol. 40(7), pages 1473-1493, July.
    4. Mausumi Kar & Saibal Kar, 2015. "Liberalized trade policy and inequality: Evidence from Post-Multi-Fibre Arrangement India and some theoretical issues," WIDER Working Paper Series wp-2015-007, World Institute for Development Economic Research (UNU-WIDER).
    5. Ge, Jianping & Lei, Yalin & Tokunaga, Suminori, 2014. "Non-grain fuel ethanol expansion and its effects on food security: A computable general equilibrium analysis for China," Energy, Elsevier, vol. 65(C), pages 346-356.

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