Trade Liberalization and Income Distribution: A CGE Model for Jordan
Omar E. Feraboli, Chemnitz University of Technology
Tim Trimborn, University of Hannover
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ABSTRACT:
The Association Agreement between Jordan and the EU entered
into force in 2002. It provides a gradual reduction of import duties on
EU products over a period of twelve years. In this paper we investigate
the economic implications of induced trade liberalization on aggregate
economic performance as well as effects on welfare and income distribution of heterogenous households. This is done by introducing heterogenous households into a standard neoclassical dynamic computable
general equilibrium model. Thereby individual households’ tax rate,
wage rate, initial endowment of assets, transfers from government and
abroad, as well as individual preferences, are calibrated by data from a household survey.
This paper was presented at the 18th International Conference of the International Trade and Finance Association, meeting at Universidade Nova de Lisboa, Lisbon, Portugal, on May 22, 2008.
SUGGESTED CITATION:
Omar E. Feraboli and Tim Trimborn,
"Trade Liberalization and Income Distribution: A CGE Model for Jordan"
(August 2008).
International Trade and Finance Association Conference Papers.
International Trade and Finance Association Working Papers 2008.
Working Paper 8.
http://services.bepress.com/itfa/18th/art8
