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Title:A computable general equilibrium model for Tunisia: Its applications in the context of Maghrebian and European trade areas
Author(s):Ben Daamech, Sami
Doctoral Committee Chair(s):Baer, Werner W.
Department / Program:Economics, General
Discipline:Economics, General
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Economics, General
Abstract:In this research I illustrate the benefits for Tunisia of a regional trade-liberalization strategy undertaken in the context of a world trade environment increasingly characterized by the emergence of regional trading blocs and the escalation of trade hostilities between them.
The majority of Tunisia's trade is with the nations of the European Union (EU). Although Tunisia has historically had strong trading relationships with individual European countries, and the EU as a whole, this is changing. Tunisia's preferential status in the Community, established in 1979, is threatened.
Given the current changes in the EU, and the possibility of the single-market Europe, Tunisia will likely have greater difficulty exporting to Europe. Tunisia must reduce its excessive dependence on Europe and examine alternatives to the European markets.
While none of the North African nations is among Tunisia's top five trading partners, it is to these nations that Tunisia must look. They are equally vulnerable to the isolationist effects of a single-market EU, and stand to be similarly hurt by loss of trade and special status with the EU. Cooperation within the Maghreb might mitigate the consequences sure to follow the loss of these markets.
This study outlines the effects two alternative trade-liberalization policies would have on Tunisia, and simulate the effects of the loss of EU markets. It is possible that a free-trade area would cushion Tunisia, and the other nations of the Maghreb, from the blow of market-loss. I first investigate the ramifications of an across-the-board liberalization of trade in Tunisia, including the elimination of all trade barriers in all sectors and against all partners. I then examine the effects of removing all trade barriers, in all sectors, with only the countries of the Maghreb.
Lastly, I examine the effects of liberalizing trade for only certain crucial sectors in order to determine the global competitiveness of the industries in these sectors. If Tunisia does lose its EU markets, it will be thrust onto the global scene to sink or swim. Now is the time to beef up the competitiveness of Tunisia's most important export industries, so that Tunisia will be ready.
Issue Date:1995
Rights Information:Copyright 1995 Ben Daamech, Sami
Date Available in IDEALS:2011-05-07
Identifier in Online Catalog:AAI9543531
OCLC Identifier:(UMI)AAI9543531

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