Trade Integration with Europe, Export Diversification and Economic Growth in Egypt

OECD Development Centre Working Paper No. 135

Posted: 25 Aug 1998

See all articles by Sebastien Dessus

Sebastien Dessus

World Bank - West Bank and Gaza Resident Mission

Akiko Suwa-Eisenmann

L'Ecole Normale Superieure ; Paris School of Economics (PSE)

Date Written: June 1998

Abstract

Egypt needs to diversify exports further in order to emerge from its isolation and to draw the maximum advantage from the growth potential offered by trade globalisation. To what extent does the bilateral free trade agreement with the European Union encourage the transition from a rentier economy to one of export-led growth? This paper uses a dynamic, calculable, general equilibrium model to assess different scenarios for the Egyptian economy to the year 2010. The authors reach the conclusion that the preferential trade agreement with Europe should facilitate the transition if the increase in trade results in higher Egyptian productivity through technology transfer and pressure from competition. Under these conditions, the agreement would seem to have a similar impact to that which could be expected from unilateral Egyptian trade liberalization affecting all the country's trading partners.

JEL Classification: C68, F11, F15

Suggested Citation

Dessus, Sebastien and Suwa-Eisenmann, Akiko, Trade Integration with Europe, Export Diversification and Economic Growth in Egypt (June 1998). OECD Development Centre Working Paper No. 135. Available at SSRN: https://ssrn.com/abstract=105468

Sebastien Dessus (Contact Author)

World Bank - West Bank and Gaza Resident Mission ( email )

P.O. BOX 54842
Jerusalem
Israel
+972 2 236 65 49 (Phone)
+972 2 236 65 43 (Fax)

Akiko Suwa-Eisenmann

L'Ecole Normale Superieure ( email )

48 boulevard Jourdan
75014 Paris
France
+33 1 4313 6325 (Phone)
+33 1 4313 6362 (Fax)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

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