Economic analysis on the impact of Free trade agreement (FTA) and Trade openness for the Agriculture sector and key macroeconomic variables

Basher Mohamed Hosaen Hndi

Doctoral thesis

Abstract:

In this study the author tries to identify the effect of Free trade agreements (FTA) and trade openness measured by export plus import divided by GDP. The objective is to investigate the causality of Free trade agreements (FTA) and trade openness on economic growth (ln_gdp), foreign directed investment (FDI), Human development (HDI), women s fertility (fertility), aggregate trade flow (LF), and Agriculture sector (AGR). To achieve the stated objectives the author uses two databases. One, the study uses gravity data base constituting data from 1950-2013 Algeria, Egypt, Morocco and Tunisia as reporter and all countries of the world as partners. Second, the study uses panel data from 2000 -2014 for North African countries (Algeria, Egypt, Morocco and Tunisia). Further, the study uses three different estimation techniques and come up with the one better explains the data. Specifically, the study uses Pooled OLS, fixed effect (FE) and random effect (RE) model. However, the choice which model better explains the data is made based on economic theories and diagnostic tests. Accordingly, the study finds that fixed effect (FE) better explains the data and the resulting finding shows that trade openness and Free trade agreements could have a positive impact on the economy and the agriculture sector in particular.

Keywords

Trade openness, Free trade agreement, Human development, Economic growth, Agriculture sector, Non-Agriculture sector, Panel model

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 14. 6. 2016

Obhajoba závěrečné práce

• Vedúci: doc. Ing. Mansoor Maitah, Ph.D. Ph.D.
• Oponent: Alexandr Soukup, CSc., doc. Ing., Hana Pačesová, externi, Otakar Němec, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Doctoral programme / odbor:
Economics and Management / Sector Economics and Economics of Enterprise