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Egypt: The Environment for Adjustment to Trade Liberalization

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  • Elshennawy, Abeer

Abstract

This paper investigated the potential effect of market failures in labor and capital markets in addition to market failure due to high transaction costs on the transitional path to trade liberalization. All three types of market failure were found to reduce the speed of adjustment to free trade and contribute to high adjustment costs. The paper also examined the consistency of the macroeconomic environment with the objectives of trade liberalization. It is postulated that a macroeconomic environment that is basically recessionary is likely to lead to high adjustment costs

Suggested Citation

  • Elshennawy, Abeer, 2005. "Egypt: The Environment for Adjustment to Trade Liberalization," Staff Papers 13895, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:13895
    DOI: 10.22004/ag.econ.13895
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    File URL: https://ageconsearch.umn.edu/record/13895/files/p05-09.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sofiane Ghali & Habib Zitouna & Zouhour Karray & Slim Driss, 2013. "Trade, Transaction Costs and TFP: Evidence from Tunisia and Egypt," Working Papers 807, Economic Research Forum, revised Dec 2013.
    2. 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.

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