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Ftaa, Output Adjustments, And Income Redistribution In A Small Open Economy: The Case Of Peru

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  • Hugo Toledo

    (Department of Economics, American University of Sharjah)

Abstract

The Free Trade Agreement of the Americas (FTAA) expected to become effective by 2005 will advance South, North, and Central American free trade. As member countries adjust to free trade, various sectors of each economy will adjust differently. This paper uses the Specific Factors (SF) model of production and trade to estimate comparative statics elasticities of changing prices on factor prices and output for Peru under a free trade scenario. The model predicts that output changes and income redistribution in Peru resulting from the emerging FTAA are substantial.

Suggested Citation

  • Hugo Toledo, 2004. "Ftaa, Output Adjustments, And Income Redistribution In A Small Open Economy: The Case Of Peru," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(1), pages 109-122, June.
    • Handle: RePEc:jed:journl:v:29:y:2004:i:1:p:109-122
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    References listed on IDEAS

    as
    1. Ronald W. Jones, 2018. "The Structure of Simple General Equilibrium Models," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 4, pages 61-84, World Scientific Publishing Co. Pte. Ltd..
    2. International Monetary Fund, 2003. "Peru: Statistical Appendix," IMF Staff Country Reports 2003/073, International Monetary Fund.
    3. Thompson, Henry, 1994. "An investigation into the quantitative properties of the specific factors model of international trade," Japan and the World Economy, Elsevier, vol. 6(4), pages 375-388, December.
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    More about this item

    Keywords

    FTAA; Income Redistribution; Peru;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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