The Effects of the Trade Liberalization between Morocco and European Union on the Moroccan Economy: Evaluation Using an Intertemporal CGE Model
Hicham HAFID, Radouane RAOUF

Abstract
The objective of this paper is to study and compare the effects of the free trade agreement between Morocco and European Union on the Moroccan economy. The approach adopted is a dynamic computable general equilibrium (CGE) model with perfect competition and constant returns. We build, in the first time, a standard static CGE model, which is a model with perfect competition and constant returns. Into the basic model, we integrate intertemporal dynamics. The modeling of the intertemporal behaviors shows that liberalization affects negatively some variables in the short-term, but its impact on the whole of the indicators is positive on long-term.

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