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Some Economic Effects of the Free Trade Agreement Between Tunisia and the European Union

Author

Listed:
  • Deardorff, A.V.
  • Brown, D.K.
  • Stern, R.M.

Abstract

We use a special constructed version of the Michigan Brown-Deardorff-Stern (BDS) Computational General Equilibrium (CGE) Model of World production and Trade to estimate the potential economic effects on the Tunisian economy that may result from the free trade agreement (FTA) between Tunisia and the European Union (EU) that was concluded in July 1995. We find that the static welfare benefits for Tunisia of the FTA range from slightly negative to somewhat positive, depending on what is assumed about intersectoral capital mobility in Tunisia.

Suggested Citation

  • Deardorff, A.V. & Brown, D.K. & Stern, R.M., 1996. "Some Economic Effects of the Free Trade Agreement Between Tunisia and the European Union," Working Papers 385, Research Seminar in International Economics, University of Michigan.
    • Handle: RePEc:mie:wpaper:385
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    Citations

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    Cited by:

    1. Cao, Liangyue, 2010. "Solving Inequality Constrained Problems using GEMPACK," Conference papers 331932, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Elbehri, Aziz & Hertel, Thomas, 2006. "A Comparative Analysis of the EU-Morocco FTA vs. Multilateral Liberalization," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 496-525.
    3. Asma Awan & Sidra Nawaz, 2022. "Towards Green Growth: Monitoring Progress and Investigating Its Determinants in South Asia," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 252-264.
    4. Lucke, Bernd & Zotti, Jacopo, 2016. "Macroeconomic effects of the Barcelona Initiative," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 837-854.
    5. Youssef Chahed & Sophie Drogué, 2003. "Incidence du processus multilatéral sur la viabilité des accords préférentiels: le cas euro-méditerranéen," Économie rurale, Programme National Persée, vol. 276(1), pages 3-16.
    6. Kavallari, Aikaterini & Schmitz, P. Michael, 2010. "Preference erosion effects on the agricultural sector of the EU’s Mediterranean Partner Countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(2), pages 1-15, August.
    7. Garcia-Alvarez-Coque, Jose-Maria & Martinez-Gomez, Victor & Villanueva, Mique, 2006. "Modelling Euro-Mediterranean Agricultural Trade," MPRA Paper 1832, University Library of Munich, Germany.
    8. Arce, Rafael de & Mahia, Ramón, 2000. "A Euro-Mediterranean Agricultural Trade Agreement: Benefits for the South and Costs for the EU," MPRA Paper 12721, University Library of Munich, Germany, revised 2001.
    9. Patricia Augier & Michael Gasiorek, 2003. "The welfare implications of trade liberalization between the Southern Mediterranean and the EU," Applied Economics, Taylor & Francis Journals, vol. 35(10), pages 1171-1190.
    10. Alessandrini, Sergio & Resmini, Laura, 2000. "FDI in the Mediterranean Region: a Comparison with CEE Experience," MPRA Paper 26103, University Library of Munich, Germany.
    11. DeRosa, Dean A., 1997. "Agricultural trade and rural development in the Middle East and North Africa: recent developments and prospects," Policy Research Working Paper Series 1732, The World Bank.
    12. Konan, Denise Eby & Van Assche, Ari, 2007. "Regulation, market structure and service trade liberalization," Economic Modelling, Elsevier, vol. 24(6), pages 895-923, November.
    13. Ferjani, Ali, 2003. "Imperfect Competition, Economies of Scale and Trade Liberalisation in Tunisia - A Comparative Analysis Using a Computable General Equilibrium Model (CGEM)," Agrarwirtschaft und Agrarsoziologie\ Economie et Sociologie Rurales, Swiss Society for Agricultural Economics and Rural Sociology, vol. 2003(1), pages 1-18.
    14. Dennis, Allen, 2006. "The impact of regional trade agreements and trade facilitation in the Middle East and North Africa region," Policy Research Working Paper Series 3837, The World Bank.
    15. Iván Martín, 2004. "La inversión extranjera directa en los países del Maghreb en el marco de la Asociación Euromediterránea: ¿el eslabón perdido?," International Trade 0405001, University Library of Munich, Germany.

    More about this item

    Keywords

    ECONOMIC MODELS ; ECONOMIC EQUILIBRIUM ; INTERNATIONAL TRADE;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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