Free Trade Agreements & Their Economic Impact

Free Trade Agreements (FTAs) have increased considerably between countries in the last decade. At present, almost every country is a member of or is in the process of establishing an FTA. It is widely believed that creating such agreements would encourage foreign trade and attract investments among members. However, many scholars also argued that this positive influence may be in reality at the expense of trade and investments with non-members and therefore can be negative. This book aims at providing empirical evidence from Algeria and the EU on whether FTAs positively or negatively affect foreign trade and investments of states. It is a case study of Algeria and its Association Agreement (A.A) with the EU that was implemented since 2005. The research follows the General Equilibrium Model developed by Lloyd and Maclaren (2004).