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Which road to liberalization in the Mediterranean? Analyzing different regional trade liberalization scenarios for Morocco and Tunisia

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  • Kuiper, Marijke
  • van Tongeren, Frank

Abstract

The Euro-Mediterranean Partnership says to aim for economic growth and stability at the Southern borders of the EU, but its actual contents reflect narrow economic interests of specific EU member states. These narrow economic interests are incoherent with the interests of the EU as a whole in stability at its Southern borders. Maintaining and possibly increasing employment is of paramount importance for Mediterranean partner countries. Current agreements will result in the opposite. Subjecting highly protected industries to competition from the EU will reduce employment, while maintaining of barriers on agricultural trade limits employment in horticultural production. This paper uses a multi-regional general equilibrium model to search for a liberalization of Mediterranean trade that supports stability at the Southern borders of the EU. It contributes a focus on both employment and on diverging interests between Northern and Southern EU member states to existing quantitative analyses.

Suggested Citation

  • Kuiper, Marijke & van Tongeren, Frank, 2005. "Which road to liberalization in the Mediterranean? Analyzing different regional trade liberalization scenarios for Morocco and Tunisia," Conference papers 331404, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331404
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    References listed on IDEAS

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    1. Paul V. Preckel, 2001. "Least Squares and Entropy: A Penalty Function Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 366-377.
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    Cited by:

    1. Erbil, Can, 2001. "Trade Taxes are Better?!?," Conference papers 330921, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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