scholarly journals Brazilian trade policies: some observed and estimated effects of the 1990s liberalization

2009 ◽  
Vol 39 (1) ◽  
pp. 59-88
Author(s):  
William Tyler ◽  
Angelo Costa Gurgel
Keyword(s):  
Trade Policy ◽  
Productivity Growth ◽  
Computable General Equilibrium ◽  
Economic Effects ◽  
Trade Policies ◽  
Cge Model ◽  
Policy Reforms ◽  
Policy Changes ◽  
Welfare Gains ◽  
Policy Effects

This paper seeks to examine economic effects of Brazil's trade policy liberalization in the early-1990s. The effects in Brazil, along with those of many other countries pursuing similar reforms, have been contentious. The period in question was one of macroeconomic turmoil followed by successful stabilization, and various policies were pursued sometimes simultaneously, rendering it analytically difficult to separate out various policy effects. The paper examines the existing evidence on the country's productivity growth and employs a computable general equilibrium (CGE) model to simulate the effects of trade policy changes. The analysis suggests that the trade policy reforms resulted in significant welfare gains for Brazil.

Can the Post-COVID FDI Boost the Indian Economy?

2022 ◽  
pp. 097226292110662
Author(s):  
Isha Jaswal ◽  
Badri Narayanan G ◽  
Shanu Jain
Keyword(s):  
Computable General Equilibrium ◽  
Motor Vehicle ◽  
Trade Policies ◽  
Cge Model ◽  
Foreign Direct Investments ◽  
Policy Reforms ◽  
Fdi Inflows ◽  
Area Of Interest ◽  
Potential Impact ◽  
The Impact

Ever since the liberation of trade policies in India, Foreign Direct Investments (FDI) has been crucial in the growth of the economy, both at the macro as well as sector level. The association between FDI and economic growth is an area of interest globally. The investment decisions are affected by several national and international events that add to the volatility of the number of inflows. COVID-19 pandemic severely impacted the intensity of FDI inflows. But the strong resilience by our government manifested in crucial policy reforms and proactive decision-making minimized the impact. This article examines the potential impact of FDI on crucial macroeconomic variables using the Computable General Equilibrium (CGE) Model. Introducing the policy shock of $90 billion into the model, an increase of 5.68% per annum in GDP is estimated. Findings indicate that the impact of FDI shall be favourable to a large number of sectors mainly metals, construction, motor vehicle, computers, and electronics in terms of increased output, exports, and employment opportunities. The study offers logical implications for the policymakers to continue strengthening their moves to attract FDI.

scholarly journals General Equilibrium Effects of Lower Labor Tax Burden in Croatia

2016 ◽  
Vol 19 (s1) ◽  
pp. 1-14 ◽  
Author(s):  
Ozana Nadoveza ◽  
Tomislav Sekur ◽  
Marija Beg
Keyword(s):  
Sensitivity Analysis ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Tax Burden ◽  
Cge Model ◽  
Policy Changes ◽  
Domestic Production ◽  
Labor Tax ◽  
Endogenous Variables ◽  
Cge Modeling

AbstractThis paper examines the effects of lower labor tax burden in Croatia by using Computable general equilibrium (CGE) model. It is a 5-sector (households, firms, government, investors and foreigners) model and economy is disaggregated on three highly aggregated sectors. One of the major advantages of CGE modeling is the evaluation of the overall effects of policy changes, shocks and reforms in the economy. We do this by lowering taxes on labor and simulating changes of all endogenous variables in the model simultaneously. Lastly, we provide sensitivity analysis results. Our results suggest that it is possible to encourage domestic production by reducing taxes on labor, but the potential effects on unemployment should be revised as to get more accurate estimates.

scholarly journals Creating a Disaggregated CGE Model for Trade Policy Analysis: GTAP-MVH

2020 ◽  
Vol 55 (1) ◽  
pp. 42-79
Author(s):  
Peter B. Dixon ◽  
Maureen Rimmer ◽  
Nhi Tran
Keyword(s):  
Computable General Equilibrium ◽  
Motor Vehicle ◽  
Trade Agreements ◽  
Trade Policies ◽  
Cge Model ◽  
Computable General Equilibrium Models ◽  
Output Data ◽  
Jel Codes ◽  
Commercial Market ◽  
Trade Wars

Thousands of economists spread across almost every country use the GTAP model to analyse trade policies including trade wars and trade agreements. GTAP has an impressive regional coverage (140 countries), but the standard commodity coverage (57 commodities/industries) can cause frustration when tariffs on narrowly defined products are being negotiated. This article sets out a method for disaggregating commodities/industries in computable general equilibrium models such as GTAP and applies it to GTAP’s motor vehicle sector. The method makes use of readily available highly disaggregated trade data supplemented by detailed input–output data where available and data from a variety of other sources such as commercial market reports. JEL Codes: C68, F13, F14, F17

scholarly journals How Much of South Korea’s Growth Miracle Can Be Explained by Trade Policy?

2015 ◽  
Vol 7 (4) ◽  
pp. 188-221 ◽  
Author(s):  
Michelle Connolly ◽  
Kei-Mu Yi
Keyword(s):  
Trade Policy ◽  
Capital Accumulation ◽  
Manufacturing Sector ◽  
Value Added ◽  
Policy Reforms ◽  
Welfare Gains ◽  
Catch Up ◽  
Multistage Production ◽  
Investment Goods ◽  
Tariff Reductions

This paper assesses the importance of trade policy reforms in South Korea, as well as the General Agreement on Tariffs and Trade (GATT) tariff reductions, in explaining Korea's growth miracle. We develop a model of neoclassical growth and trade in which lower tariffs lead to increased gross domestic product (GDP) per worker via comparative advantage and specialization, and capital accumulation. We calibrate the model and simulate the tariff reductions that occurred between early 1962 and 1989. The model can explain 17 percent of South Korea's catch-up to the G7 countries in value-added per worker in the manufacturing sector. These gains, as well as most of the welfare gains, are driven by two key transmission channels: multistage production and imported investment goods. (JEL F13, F43, L60, O47)

Identity Politics and Trade Policy

2020 ◽  
Author(s):  
Gene M Grossman ◽  
Elhanan Helpman
Keyword(s):  
Trade Policy ◽  
Identity Politics ◽  
Social Identity Theory ◽  
Political Competition ◽  
Well Being ◽  
Social Identification ◽  
Trade Policies ◽  
Policy Changes ◽  
Material Component ◽  
The Status

Abstract We characterize trade policies that result from political competition when assessments of well-being include both material and psychosocial components. The material component reflects, as usual, satisfaction from consumption. Borrowing from social identity theory, we take the psychosocial component as combining the pride and self-esteem an individual draws from the status of groups with which she identifies and a dissonance cost she bears from identifying with those that are different from herself. In this framework, changes in social identification patterns that may result, for example, from increased income inequality or heightened class or ethnic tensions, lead to pronounced changes in trade policy. We analyse the nature of these policy changes.

Economic Effects of Tariff Liberalization of Prospective India-GCC FTA: A Computable General Equilibrium Analysis

2019 ◽  
Vol 54 (3) ◽  
pp. 224-252
Author(s):  
Saba Ismail ◽  
Shahid Ahmed
Keyword(s):  
Computable General Equilibrium ◽  
Economic Effects ◽  
Equilibrium Analysis ◽  
Welfare Gains ◽  
Trade Relations ◽  
Positive Effects ◽  
Gcc Countries ◽  
Trading Partners ◽  
Negative Effect ◽  
Tariff Liberalization

The trade relations between India and the Gulf Cooperation Council (GCC) countries have been intensified during the last two decades. The GCC has emerged as one of the largest trading partner of India. This article attempts to investigate the result of tariff liberalization on welfare, output, employment and the potential trade flows between India and the GCC region using the GTAP-model. The study reveals that tariff liberalization has positive effects on India and GCC countries, with no or nominal negative effect on the rest of the world. Overall results show that India’s trade relation with GCC countries is increasing continuously, but still there is a lot of untapped potential to bring the welfare gains for both trading partners. Finally, the study concludes that the proposed economic integration in terms of FTA between India and GCC will be mutually beneficial and welfare enhancing, and a case of a win–win situation. JEL Codes: F1, F13, F14, F17

MODELING LAND USE AND THE EFFECTS OF CLIMATE CHANGE IN BRAZIL

2017 ◽  
Vol 08 (01) ◽  
pp. 1750002 ◽  
Author(s):  
WESLEM RODRIGUES FARIA ◽  
EDUARDO AMARAL HADDAD
Keyword(s):  
Climate Change ◽  
Land Use ◽  
Computable General Equilibrium ◽  
Demand Curve ◽  
Economic Effects ◽  
Cge Model ◽  
Climate Data ◽  
Intergovernmental Panel ◽  
Temperature And Precipitation ◽  
Detailed Specification

This paper discusses the development of a computable general equilibrium (CGE) model with detailed specification for land use. The model considers two aspects of land use: land as a measure of production cost and land as a physical entity that can be used in a variety of ways. To analyze the economic effects of climate change, we integrated the CGE model and an econometric model. The results based on this model, which captures how land allocation responds to changes in temperature and precipitation, are introduced as elasticities in the CGE model to offset the demand curve for land among 13 different land uses in 27 regions of Brazil. The simulations are based on climate data from a benchmark period (1975–2005) and Intergovernmental Panel on Climate Change climate projection scenarios for the periods 2010–2039, 2040–2069, and 2070–2099. The results predict negative changes in real gross domestic product ranging from [Formula: see text]0.0054% to [Formula: see text]0.0198%, depending on the scenario.

An empirical assessment of the trade facilitation initiative: econometric evidence and global economic effects

2013 ◽  
Vol 13 (1) ◽  
pp. 103-130 ◽  
Author(s):  
C. ZAKI
Keyword(s):  
Computable General Equilibrium ◽  
Developing Economies ◽  
Economic Effects ◽  
Cge Model ◽  
Regional Trade ◽  
Trade Facilitation ◽  
Long Run ◽  
Red Tape ◽  
Short Run ◽  
Sub Saharan

AbstractThis paper attempts to model trade facilitation in a multi-regional and multi-sectoral computable general equilibrium (CGE) model, MIRAGE. It follows Decreux and Fontagné (2009) in modeling trade facilitation and in assuming that administrative barriers are an iceberg cost. I extend their model using more comprehensive measures of ad-valorem equivalents (AVEs) of red tape costs, which are computed from a gravity model, and are introduced in the CGE model. The novelty in using those AVEs is that they take into account the effects of bureaucracy, internet coverage, corruption, and geographical barriers on the time to trade. The paper has four major findings. Gains derived from trade facilitation are more significant for developing economies (especially for the Middle East and North Africa region and Sub-Saharan countries) than for developed ones, whether in terms of welfare gain (either in the short or long run) or increase in trade. Second, long-run welfare effects of trade facilitation are much higher than in the short run. Third, trade facilitation helps boost both intra-regional trade and inter-regional trade. Fourth and most interestingly, it also helps improve export diversification, leading to an expansion in those sectors that are more sensitive to time, such as food, textiles, and electronics.

Economic Effects of 2004-2009 Tax Reforms: Retrospective Analysis

2012 ◽  
pp. 108-123
Author(s):  
E. Penukhina ◽  
D. Belousov ◽  
K. Mikhailenko
Keyword(s):  
Retrospective Analysis ◽  
Tax Policy ◽  
Economic Effects ◽  
Tax Policies ◽  
Policy Changes ◽  
Tax Reforms ◽  
Russian Economy ◽  
Balanced Budget ◽  
Budget System

The article determines, describes and analyzes phases of tax reforms in Russia. We estimate macroeconomic and fiscal effects of various tax policies held during the second and third phases of tax reforms. The necessity of providing a balanced budget system, as well as complex assessment of effects of tax policy changes for the development of the Russian economy is noted.

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