A CGE Assessment of FTA between Tunisia and the EU Under Oligopolistic Market Structures

Review of Middle East Economics and Finance, Vol. 1, No. 2, August 2003

Posted: 23 Nov 2005

See all articles by Rim Chatti

Rim Chatti

ESSEC Business School - Economics Department

Abstract

In this paper the impact of removing all Tunisian tariffs on imports from EU, while maintaining protection on imports from the rest of the world, is evaluated using computable general equilibrium (CGE) models. Either competitive or Cournot oligopolistic commodities market structures with and without barriers to entry and exit are considered. It is found that FTA improves welfare in all cases, and these gains are the most important with oligopoly and free entry and exit. At the sectoral level, the FTA benefits to the different industries at the expanse of agriculture and services, which are relatively intensive in primary factors of production.

Keywords: CGE models, FTA, IRTS, oligopoly, Tunisia

JEL Classification: C68, D43, D58, F12

Suggested Citation

Chatti, Rim, A CGE Assessment of FTA between Tunisia and the EU Under Oligopolistic Market Structures. Review of Middle East Economics and Finance, Vol. 1, No. 2, August 2003, Available at SSRN: https://ssrn.com/abstract=851145

Rim Chatti (Contact Author)

ESSEC Business School - Economics Department ( email )

95021 Cergy-Pontoise Cedex
France
216 71 873 286 (Phone)

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