The euro-mediterranean free trade agreement and the cost of tariff liberalization in Egypt

Author's Department

Economics Department

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https://doi.org/10.1016/j.jpolmod.2012.02.002

Document Type

Research Article

Publication Title

Journal of Policy Modeling

Publication Date

3-1-2013

doi

10.1016/j.jpolmod.2012.02.002

Abstract

In this research, a regional intertemporal general equilibrium model is constructed to study the nature of the adjustment path to preferential trade liberalization between Egypt and the European Union. Aside from the dynamic gains from trade - higher growth and welfare - the Egyptian economy incurs adjustment costs along the transition to freer trade. However, these costs are relatively lower than those incurred under unilateral liberalization. Welfare is found to be higher if the implementation of the agreement is followed some time in the future with removing all remaining tariffs on imports originating from the rest of the world. © 2012 Society for Policy Modeling.

First Page

326

Last Page

338

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