Article ID Journal Published Year Pages File Type
968573 Journal of Policy Modeling 2013 13 Pages PDF
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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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