Kuiper, Marijke. (2004) Fifty ways to leave your protection: comparing applied models of the Euro-Mediterranean Association Agreements. ENARPRI Working Paper No. 6, 1 April 2004. [Working Paper]
Abstract
Recent increases in the number of multilateral and preferential trade agreements have sparked the development of applied models to quantify the impact of trade agreements. Outcomes generally support the theoretical notion that liberalising trade increases welfare. The increase in aggregate welfare is attained through a restructuring of the economy, with possible painful effects for certain economic sectors or parts of the population. The current debate on trade liberalisation focuses on the distribution of costs and benefits. Applied models can provide an understanding of the distribution of costs and benefits. Their outcomes, however, are determined by the way in which the economy and the liberalisation measures are modelled. The aim of this study is to compare different ways of quantifying the impact of the Euro-Mediterranean Association Agreements (EMAAs). Based on the assessment of key model features and analysed scenarios we assess to what extent existing studies address key policy issues related to the EMAAs and identify directions for future research.
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