In this study, a dynamically recursive general equilibrium model of Morocco is used to examine alternative trade and domestic policy scenarios involving the implementation of the EU Association Agreement for the period 1998-2012. The model has a detailed treatment of the agricultural and rural economy in Morocco. However, trade liberalization disfavors the rural poor, especially in rainfed areas. We simulate the introduction of complementary domestic policies with a non-distorting transfer program that fully compensates the owners of rainfed resources and skill upgrading for the rural labor force. Download full-text discussion paper .
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