A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements

A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements

This paper explores the economic impacts of preferential trade agreements, focusing on the provisions they contain, beyond phasing out tariffs. Clustering 278 preferential trade agreements based on 906 provisions grouped into 18 policy areas, three...

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Main Authors: Fontagne, Lionel, Rocha, Nadia, Ruta, Michele, Santoni, Gianluca
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
PREFERENTIAL TRADE AGREEMENTS
DEEP TRADE AGREEMENT
DEEP INTEGRATION
STRUCTURAL GRAVITY
GENERAL EQUILIBRIUM MODEL
Online Access:http://documents.worldbank.org/curated/en/361861618415615671/A-General-Equilibrium-Assessment-of-the-Economic-Impact-of-Deep-Trade-Agreements
http://hdl.handle.net/10986/35452
id okr-10986-35452
recordtype oai_dc
spelling okr-10986-354522022-09-20T00:09:10Z A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements Fontagne, Lionel Rocha, Nadia Ruta, Michele Santoni, Gianluca PREFERENTIAL TRADE AGREEMENTS DEEP TRADE AGREEMENT DEEP INTEGRATION STRUCTURAL GRAVITY GENERAL EQUILIBRIUM MODEL This paper explores the economic impacts of preferential trade agreements, focusing on the provisions they contain, beyond phasing out tariffs. Clustering 278 preferential trade agreements based on 906 provisions grouped into 18 policy areas, three clusters are obtained for which a trade elasticity to preferential trade agreement is estimated using structural gravity. A series of full general equilibrium counterfactual situations for endowment economies is simulated, revealing the economic impacts of deepening existing trade agreements and signing new ones—that is, the intensive and extensive margins of preferential trade agreements. The paper illustrates the method with a general deepening of existing preferential trade agreements worldwide. Focusing on the examples of the Latin America and the Caribbean and East Asia and Pacific regions, the paper shows that deepening preferential trade agreements leads to higher trade and welfare effects than signing new ones. 2021-04-19T19:42:44Z 2021-04-19T19:42:44Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/361861618415615671/A-General-Equilibrium-Assessment-of-the-Economic-Impact-of-Deep-Trade-Agreements http://hdl.handle.net/10986/35452 English Policy Research Working Paper;No. 9630 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Latin America & Caribbean Caribbean East Asia Latin America
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PREFERENTIAL TRADE AGREEMENTS
DEEP TRADE AGREEMENT
DEEP INTEGRATION
STRUCTURAL GRAVITY
GENERAL EQUILIBRIUM MODEL
spellingShingle PREFERENTIAL TRADE AGREEMENTS
DEEP TRADE AGREEMENT
DEEP INTEGRATION
STRUCTURAL GRAVITY
GENERAL EQUILIBRIUM MODEL
Fontagne, Lionel
Rocha, Nadia
Ruta, Michele
Santoni, Gianluca
A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements
geographic_facet East Asia and Pacific
Latin America & Caribbean
Caribbean
East Asia
Latin America
relation Policy Research Working Paper;No. 9630
description This paper explores the economic impacts of preferential trade agreements, focusing on the provisions they contain, beyond phasing out tariffs. Clustering 278 preferential trade agreements based on 906 provisions grouped into 18 policy areas, three clusters are obtained for which a trade elasticity to preferential trade agreement is estimated using structural gravity. A series of full general equilibrium counterfactual situations for endowment economies is simulated, revealing the economic impacts of deepening existing trade agreements and signing new ones—that is, the intensive and extensive margins of preferential trade agreements. The paper illustrates the method with a general deepening of existing preferential trade agreements worldwide. Focusing on the examples of the Latin America and the Caribbean and East Asia and Pacific regions, the paper shows that deepening preferential trade agreements leads to higher trade and welfare effects than signing new ones.
format Working Paper
author Fontagne, Lionel
Rocha, Nadia
Ruta, Michele
Santoni, Gianluca
author_facet Fontagne, Lionel
Rocha, Nadia
Ruta, Michele
Santoni, Gianluca
author_sort Fontagne, Lionel
title A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements
title_short A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements
title_full A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements
title_fullStr A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements
title_full_unstemmed A General Equilibrium Assessment of the Economic Impact of Deep Trade Agreements
title_sort general equilibrium assessment of the economic impact of deep trade agreements
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/361861618415615671/A-General-Equilibrium-Assessment-of-the-Economic-Impact-of-Deep-Trade-Agreements
http://hdl.handle.net/10986/35452
_version_ 1764483062885777408

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