GTAP Resources: Resource Display
| GTAP Resource #1643 |
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"A Comparative Analysis of the EU-Morocco FTA vs. Multilateral Liberalization" by Elbehri, Aziz and Thomas Hertel Abstract An applied general equilibrium model with oligopoly and scale economies, based on detailed plant-level data, is used to contrast the impacts of the Morocco-EU free trade area (FTA) to multilateral trade liberalization on Morocco’s economy. Simulation results show that the FTA agreement is likely to have adverse effects on Morocco due to: (a) deteriorating terms of trade, (b) reductions in output per firm in industries dominated by scale economies, (c) diversion of imports away from relatively low cost, non-EU suppliers, and (d) potentially adverse effects on the aggregate demand for labor which could exacerbate already high levels of unemployment. We contrast this FTA with a multilateral liberalization scenario along the lines of those proposed under the Doha Development Round and find this to be more beneficial to Morocco, despite the associated income transfer from the EU to Morocco. The difference may be attributed to: (a) lesser terms of trade losses, (b) positive scale effects, (c) non-preferential liberalization of imports into Morocco, and (d) a positive impact on aggregate labor demand and hence unemployment. We conclude that Morocco would be better off pursuing trade liberalization in the multilateral arena. JEL classification: F12, F14, F15 Keywords: Applied general equilibrium; Market Structure; Trade liberalization; Developing economies; Morocco |
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- Africa (North) |
| Attachments |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  GTAP Resource 1643 (5.0 MB) Replicated: 0 time(s) GTAP Working Paper No. 30 (187.1 KB) Replicated: 0 time(s) GTAP Working Paper No. 30 - Appendices (35.5 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions The zip file attached is a RunGTAP archive. To install: 1. Copy the zip file into a folder 2. Open RunGTAP 3. Select File | Version Archive | Load ZIP 6. Select zip file 7. Choose version name and Click "ok" 8. Click "OK". In the top blue line of RunGTAP (above the menu) you should see the following: "RunGTAP: "Version name"/"experiment loaded". Make sure that "Version name" is the name you specified. |
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Last Modified: 9/15/2023 1:05:45 PM
