Euro-Med trade integration in agriculture and food: Social accounting matrix analyses

Abstract

This paper explores social accounting matrices (SAMs) using threecountry case studies (Egypt, Morocco and Tunisia). For each, the agri-food sector,trade negotiations with the European Union and associated challenges are first presented. The key sectors are then identified and analysed using the SimSip SAMtool (Parra and Wodon, 2009). Using sensitivity analysis, the implications of freetrade for key sectors were analysed. By evaluating backward and forward linkages inthe economy of each country, the most important sectors likely to take a lead roleand become essential drivers of growth were identified. Due to strong backwardrelations and high labour intensity, some agricultural sectors have the potential to generate significant income, thus supporting economic growth.