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The Impact of the Multifiber Agreement Phaseout on Unemployment in Tunisia: A Prospective Dynamic Analysis

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  • Marouani, Mohamed A.

Abstract

Using a dynamic general equilibrium model, the paper provides a quantitative assessment of the impact of the Multifiber Agreement dismantling on unemployment in Tunisia. The specification of intertemporal behavior of households and firms permits the analysis of the effects of the shock on consumption and investment in the long run. By including a multisectoral model of efficiency wages, the model allows for an endogenous determination of unemployment. The main findings are that unemployment and wage inequality will increase due to the MFA phase out, and that a deeper integration with the EU can soften the negative effects of the shock.

Suggested Citation

  • Marouani, Mohamed A., 2005. "The Impact of the Multifiber Agreement Phaseout on Unemployment in Tunisia: A Prospective Dynamic Analysis," University of Göttingen Working Papers in Economics 39, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:39
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    Cited by:

    1. Marco Stampini & Audrey Chouchane, 2011. "Working Paper 123 - Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," Working Paper Series 231, African Development Bank.
    2. World Bank, 2006. "Fostering Higher Growth and Employment in the Kingdom of Morocco," World Bank Publications - Books, The World Bank Group, number 7114.
    3. Stampini Marco & Verdier-Chouchane Audrey, 2011. "Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," Review of Middle East Economics and Finance, De Gruyter, vol. 7(2), pages 1-35, September.
    4. Amaral, Daniel Furlan, 2006. "Efeitos Do Fim Do Acordo Multifibras Na Produção E No Emprego Dos Setores Têxtil E De Vestuário No Brasil," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 149132, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    5. Walkenhorst, Peter & Malouche, Mariem, 2006. "Trade Policy and Export Performance in Morocco," MPRA Paper 23119, University Library of Munich, Germany.

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    More about this item

    Keywords

    Unemployment; dynamic general equilibrium model; efficiency wages; multifiber agreement; Tunisia;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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