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World tariff liberalization in agriculture: An assessment using a global CGE trade model for EU15 regions

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  • Perali, Federico
  • Pieroni, Luca
  • Standardi, Gabriele

Abstract

This paper aims at modeling a global CGE trade model for the EU15 subnational regions. This model is used to assess production reallocation across sectors in each EU15 region, assuming a scenario in which world tariff liberalization is implemented in the agricultural sector. The model is parsimonious in terms of data, focusing on unskilled and skilled labor as the source of heterogeneity across regions. A stylized model is built to interpret trade policy effects. Results show decreases in agricultural production in the EU15 of about 0.93%. All regions reduce agriculture but show different magnitudes in the relative changes of production. Large reallocation effects are observed between manufactures and services, some regions specializing in the former and others in the latter. In addition, the introduction of labor mobility within the EU15 and the EU27 causes strong amplification effects in manufactures and services.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 34 (2012)
Issue (Month): 2 ()
Pages: 155-180

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Handle: RePEc:eee:jpolmo:v:34:y:2012:i:2:p:155-180

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Web page: http://www.elsevier.com/locate/inca/505735

Related research

Keywords: CGE modeling; International trade; Agriculture;

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References

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Cited by:
  1. Féménia, Fabienne & Gohin, Alexandre, 2013. "On the optimal implementation of agricultural policy reforms," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 61-74.
  2. Jonasson, Erik & Filipski, Mateusz & Brooks, Jonathan & Taylor, J. Edward, 2014. "Modeling the welfare impacts of agricultural policies in developing countries," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 63-82.

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