Some Economic Effects of the Free Trade Agreement between Tunisia and the European Union

A1.159 WP 385

45 Pages Posted: 26 Jan 1998

See all articles by Alan V. Deardorff

Alan V. Deardorff

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy; University of Michigan at Ann Arbor - Department of Economics

Drusilla K. Brown

Tufts University - Department of Economics

Robert M. Stern

University of Michigan at Ann Arbor - Department of Economics

Date Written: 1996

Abstract

We use a specially constructed version of the Michigan Brown-Deardorff-Stern (BDS) Computational General Equilibrium (CGE) Model of World production and Trade to estimate the potential economic effects on the Tunisian economy that may result from the free trade agreement (FTA) between Tunisia and the European Union (EU) that was concluded in July 1995. We find that the static welfare benefits for Tunisia of the FTA range from slightly negative to somewhat positive, depending on what is assumed about intersectoral capital mobility in Tunisia.

JEL Classification: F10; F14; F47

Suggested Citation

Deardorff, Alan V. and Brown, Drusilla K. and Stern, Robert M., Some Economic Effects of the Free Trade Agreement between Tunisia and the European Union (1996). A1.159 WP 385, Available at SSRN: https://ssrn.com/abstract=54040 or http://dx.doi.org/10.2139/ssrn.54040

Alan V. Deardorff (Contact Author)

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States

University of Michigan at Ann Arbor - Department of Economics ( email )

611 Tappan Street
458 Lorch Hall
Ann Arbor, MI 48109-1220
United States
313-764-6817 (Phone)
313-764-2769 (Fax)

Drusilla K. Brown

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States
617-627-3096 (Phone)
617-627-3917 (Fax)

Robert M. Stern

University of Michigan at Ann Arbor - Department of Economics ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States
313-764-2373 (Phone)
313-763-9181 (Fax)

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