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Trade Liberalization and Income Distribution: A CGE Model for Jordan

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  • Feraboli, Omar
  • Trimborn, Timo

Abstract

The Association Agreement between Jordan and the EU entered into force in 2002. It provides a gradual reduction of import duties on EU products over a period of twelve years. In this paper we investigate the economic implications of induced trade liberalization on aggregate economic performance as well as effects on welfare and income distribution of heterogenous households. This is done by introducing heterogenous households into a standard neoclassical dynamic computable general equilibrium model. Thereby individual households' tax rate, wage rate, initial endowment of assets, transfers from government and abroad, as well as individual preferences, are calibrated by data from a household survey.

Suggested Citation

  • Feraboli, Omar & Trimborn, Timo, 2009. "Trade Liberalization and Income Distribution: A CGE Model for Jordan," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 10, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec09:10
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    Cited by:

    1. Anda David & Mohamed Ali Marouani, 2013. "The Labor Mobility-Employment Nexus: A General Equilibrium Analysis for Jordan," Working Papers 824, Economic Research Forum, revised Dec 2013.
    2. 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.
    3. Khan, Muhammad Aamir, 2017. "Regional Trade and Economic Development: Options for Pakistan," Conference papers 332899, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. 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.
    5. Manzoor, Davood & Haqiqi, Iman & Aghababaei, Mohammad, 2012. "Modeling Dutch Disease in the Economy of Iran: A Computable General Equilibrium Approach," MPRA Paper 95821, University Library of Munich, Germany.

    More about this item

    Keywords

    Dynamic CGE; Heterogenous households; Trade liberalisation; Jordan;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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