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Effective Protection and Investment Incentives in Egypt and Jordan During the Transition to Free Trade with Europe

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  • Djankov, Simeon
  • Hoekman, Bernard

Abstract

This paper assesses the possible impact of a Euro-Mediterranean Agreement (EMA) on Egypt and Jordan and identifies policy options that will increase the benefits of free trade with Europe. The extent to which these countries will benefit from an EMA depends greatly on the investment response and thus on improvements in the investment climate. The latter will be determined by many factors. Three that can be affected by an EMA and are emphasized are the modalities of the tariff reduction strategy that will be pursued, the extent to which transaction costs are reduced, and upgrading the quality and lowering the costs of intermediate service inputs through greater competition. Many of the policy and institutional changes that are required are not or only in part subject to the coverage of the EMA.

Suggested Citation

  • Djankov, Simeon & Hoekman, Bernard, 1996. "Effective Protection and Investment Incentives in Egypt and Jordan During the Transition to Free Trade with Europe," CEPR Discussion Papers 1415, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1415
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    Citations

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    Cited by:

    1. Francois, Joseph F. & McQueen, Matthew & Wignaraja, Ganeshan, 2005. "European Union-developing country FTAs: overview and analysis," World Development, Elsevier, vol. 33(10), pages 1545-1565, October.
    2. Hoekman, Bernard & Konan, Denise Eby, 1999. "Deep integration, nondiscrimination, and Euro-Mediterranean free trade," Policy Research Working Paper Series 2130, The World Bank.
    3. Scrieciu, Silviu S., 2004. "Assessing the Economic Impacts of Incorporating Romania's Agricultural and Food Sectors into EU's Customs Union: An Applied General Equilibrium Approach," Conference papers 331175, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Mattoo, Aaditya & Rathindran, Randeep, 2006. "Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 64-98.
    5. Feraboli, Omar, 2011. "Preferential vs. Full Trade Liberalisation: A Dynamic CGE Model with Heterogeneous Households for Jordan," Proceedings of the German Development Economics Conference, Berlin 2011 26, Verein für Socialpolitik, Research Committee Development Economics.
    6. FERABOLI Omar, 2010. "A Dynamic Analysis of Jordan’s Trade Liberalisation," EcoMod2003 330700052, EcoMod.
    7. Hoekman, Bernard & Mattoo, Aaditya, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank.
    8. Baccini,Leonardo & Fiorini,Matteo & Hoekman,Bernard M. & Altomonte,Carlo & Colantone,Italo, 2021. "Global Value Chains and Deep Integration," Policy Research Working Paper Series 9598, The World Bank.
    9. Omar Feraboli, 2012. "Preferential vs. Full Trade Liberalisation: A Dynamic CGE Model with Heterogeneous Households for Jordan," Working Paper series 08_12, Rimini Centre for Economic Analysis.
    10. Bernard Hoekman & Will Martín, 1999. "Some Market Access Issues for Developing Countries in a Millennium Round: Results from Recent World Bank Research," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 36(109), pages 947-978.
    11. Omar FERABOLI, 2010. "A Dynamic Multisectoral Analysis of Jordan's Trade Liberalisation," EcoMod2004 330600050, EcoMod.
    12. Feraboli Omar, 2007. "Preferential Trade Liberalisation, Fiscal Policy Responses and Welfare: A Dynamic CGE Model for Jordan," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 227(4), pages 335-357, August.
    13. Elshennawy, Abeer, 2005. "Egypt: The Environment for Adjustment to Trade Liberalization," Staff Papers 13895, University of Minnesota, Department of Applied Economics.
    14. Marchetti, Juan A., 2004. "Developing countries in the WTO services negotiations," WTO Staff Working Papers ERSD-2004-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    15. Bernard Hoekman & Denise Eby Konan, 1998. "Deep Integration, Regionalism and Nondiscrimination," Working Papers 199804, University of Hawaii at Manoa, Department of Economics.

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    More about this item

    Keywords

    Effective Protection; Egypt; Free Trade Agreements; Jordan;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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