The Euro-Mediterranean free trade agreement and the cost of tariff liberalization in Egypt

Abeer Elshennawy

Journal of Policy Modeling, 2013, vol. 35, issue 2, 326-338

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.

Keywords: Egypt; Preferential trade agreements; Adjustment costs; Intertemporal General Equilibrium Models (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:35:y:2013:i:2:p:326-338

DOI: 10.1016/j.jpolmod.2012.02.002

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