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The Euro-Mediterranean free trade agreement and the cost of tariff liberalization in Egypt

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  • Elshennawy, Abeer

Abstract

In this research, a regional intertemporal general equilibrium model is constructed to study the nature of the adjustment path to preferential trade liberalization between Egypt and the European Union. Aside from the dynamic gains from trade – higher growth and welfare – the Egyptian economy incurs adjustment costs along the transition to freer trade. However, these costs are relatively lower than those incurred under unilateral liberalization. Welfare is found to be higher if the implementation of the agreement is followed some time in the future with removing all remaining tariffs on imports originating from the rest of the world.

Suggested Citation

  • Elshennawy, Abeer, 2013. "The Euro-Mediterranean free trade agreement and the cost of tariff liberalization in Egypt," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 326-338.
    • Handle: RePEc:eee:jpolmo:v:35:y:2013:i:2:p:326-338
    DOI: 10.1016/j.jpolmod.2012.02.002
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    References listed on IDEAS

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    Cited by:

    1. Mario Holzner, 2013. "Impact of Croatian EU Accession on Regional Trade Patterns," wiiw Policy Notes 10, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    Egypt; Preferential trade agreements; Adjustment costs; Intertemporal General Equilibrium Models;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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