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General Equilibrium Evaluation of Canada-U.S. Trade Liberalization in a Global Context

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  • Randall Wigle

Abstract

This paper analyzes the effects of Canada-U.S. trade liberalization using a revised version of the global trade model due to J. Whalley (1986). The model incorpora tes scale features similar to those in R. G. Harris and D. Cox (1984). The evaluated effects of bilateral free trade are significantly dif ferent than those of Harris and Cox, and the paper evaluates the cont ribution of various model features to these differences. Elasticity v alues used, calibration procedures used, and the basic model structur e (global versus one-country) are found to be important contributions to the difference in model results.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 21 (1988)
Issue (Month): 3 (August)
Pages: 539-64

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Handle: RePEc:cje:issued:v:21:y:1988:i:3:p:539-64

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Citations

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Cited by:
  1. Keuschnigg, Christian & Kohler, Wilhelm K., 1994. "Commercial Policy and Dynamic Adjustment Under Monopolistic Competition," CEPR Discussion Papers 1037, C.E.P.R. Discussion Papers.
  2. Markusen, James R. & Rutherford, Thomas F. & Hunter, Linda, 1995. "Trade liberalization in a multinational-dominated industry," Journal of International Economics, Elsevier, vol. 38(1-2), pages 95-117, February.
  3. Cletus C. Coughlin, 1990. "What do economic models tell us about the effects of the U.S.-Canada Free Trade Agreement?," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 40-58.
  4. Jean Mercenier, 1994. "Nonuniqueness of solutions in applied general equilibrium models with scale economies and imperfect competition," Staff Report 183, Federal Reserve Bank of Minneapolis.
  5. Daron Djerdjian, 2010. "Economics versus politics in trade policy," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(2), pages 223-240, June.
  6. Linda Hunter & James R. Markusen & Thomas F. Rutherford, 1991. "Trade Liberalization in a Multinational-Dominated Industry: A Theoretical and Applied General-Equilibrium Analysis," NBER Working Papers 3679, National Bureau of Economic Research, Inc.
  7. Djerdjian, Daron O., 2009. "Economies of scale and trade policy: The median voter model revisited," International Review of Economics & Finance, Elsevier, vol. 18(3), pages 479-487, June.
  8. Gabrielle Antille & Fabrizio Carlevaro & Nicolas Schmitt & Simon Fraser, 1990. "Europe 1992 and Beyond: Towards a Quantitative General Equilibrium Assessment for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 126(III), pages 193-213, September.
  9. Kaludura Abayasiri-Silva & Mark Horridge, 1998. "The Effects of Current Fiscal Restraint on the Australian Economy: an Applied General Equilibrium Analysis with Imperfect Competition," Centre of Policy Studies/IMPACT Centre Working Papers op-91, Victoria University, Centre of Policy Studies/IMPACT Centre.
  10. Koo, Won W. & Karemera, David, 1992. "Trade Creation and Diversion Effects of the U.S.-Canadian Free Trade Agreement," Agricultural Economics Reports 23345, North Dakota State University, Department of Agribusiness and Applied Economics.
  11. Lawrence H. Goulder and Barry Eichengreen., 1989. "Trade Liberalization in General Equilibrium: Intertemporal and Inter-Industry Effects," Economics Working Papers 89-110, University of California at Berkeley.
  12. Adams, F. Gerard & Park, I., 1995. "Measuring the impact of AFTA: An application of a linked CGE system," Journal of Policy Modeling, Elsevier, vol. 17(4), pages 325-365, August.
  13. Heinz Hauser & Peter Moser, 1990. "Die wirtschaftswissenschaftliche Forschung über Fragen Schweiz - EG: Stand, Hauptergebnisse, Lücken," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 126(III), pages 231-253, September.
  14. Kaludura Abayasiri-Silva & Mark Horridge, 1996. "Economies of Scale and Imperfect Competition in an Applied General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-84, Victoria University, Centre of Policy Studies/IMPACT Centre.

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