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What is at Stake in the Doha Round?

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  • Susanna Kinnman
  • Magnus Lodefalk

Abstract

In this study the key elements of the WTO Doha Round are simulated and the main implications for international trade and national income are analysed. Based on negotiation information, three scenarios are designed. All scenarios encompass goods, services and agricultural liberalisation as well as trade facilitation. For goods liberalisation, a so‐called Swiss formula is used to cut bound tariff rates. Agricultural tariffs are cut according to a tiered linear formula. Attention has been given to the modelling of trade facilitation. Indirect as well as direct trade transaction costs are modelled. For simulation of the services liberalisation quantitative estimates of indirect trade barriers are used. The simulation results show that all regions in the aggregation gain in the simulated Doha scenarios, with a particularly strong result for developing countries. A conservative estimate is that global income increases with 0.2–0.7 per cent of initial GDP, depending on the level of liberalisation. Trade facilitation contributes the most to these results, with increased market access for non‐agricultural goods coming in second place. Overall, simulations indicate the importance of countries’ own liberalisation for their national income gains, and the importance of a broad‐based round.

Suggested Citation

  • Susanna Kinnman & Magnus Lodefalk, 2007. "What is at Stake in the Doha Round?," The World Economy, Wiley Blackwell, vol. 30(8), pages 1305-1325, August.
    • Handle: RePEc:bla:worlde:v:30:y:2007:i:8:p:1305-1325
    DOI: 10.1111/j.1467-9701.2007.01045.x
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    References listed on IDEAS

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    1. Francois, Joseph & McDonald, Brad & Nordström, Håkan, 1994. "The Uruguay Round: A Global General Equilibrium Assessment," CEPR Discussion Papers 1067, C.E.P.R. Discussion Papers.
    2. Alan Matthews & Keith Walsh, 2006. "The Economic Consequences of the Doha Round for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 37(1), pages 47-69.
    3. Piermartini, Roberta & Teh, Robert, 2005. "Demystifying modelling methods for trade policy," WTO Discussion Papers 10, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    1. N. N., 2007. "Austria's External Economic Relations 2007. Executive Summary," WIFO Studies, WIFO, number 31061, April.
    2. Mehdi Shafaeddin, 2010. "The Political Economy of WTO with Special Reference to NAMA Negotiations," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 22(2), pages 175-196, April.
    3. Elisabeth M. Christen & Joseph Francois & Bernard Hoekman, 2012. "CGE Modeling of Market Access in Services," Economics working papers 2012-08, Department of Economics, Johannes Kepler University Linz, Austria.
    4. Michael Reiterer, 2009. "The Doha development agenda of the WTO," Progress in Development Studies, , vol. 9(4), pages 359-375, October.
    5. Olga Pindyuk & Leon Podkaminer & Sandor Richter, 2008. "Monthly Report No. 1/2008," wiiw Monthly Reports 2008-01, The Vienna Institute for International Economic Studies, wiiw.
    6. Mitik, Lulit & Decaluwé, Bernard, 2008. "The impact of trade on female labor and girls’ education in South Africa: a CGE analysis," Conference papers 331785, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Nguyen, Cuong, 2013. "Poverty, Inequality and Trade Facilitation in Low and Middle Income Countries," MPRA Paper 50312, University Library of Munich, Germany.
    8. Persson, Maria, 2008. "Trade Facilitation and the Extensive and Intensive Margins of Trade," Working Papers 2008:13, Lund University, Department of Economics.

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