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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

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    (Department of Economics, American University of Sharjah)

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    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.

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    File URL: http://www.jed.or.kr/full-text/29-1/Hugo_Toledo.pdf
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    Bibliographic Info

    Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

    Volume (Year): 29 (2004)
    Issue (Month): 1 (June)
    Pages: 109-122

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    Handle: RePEc:jed:journl:v:29:y:2004:i:1:p:109-122

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    Related research

    Keywords: FTAA; Income Redistribution; Peru;

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    1. 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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