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Chapter 13 Ex Ante

In: New Developments in Computable General Equilibrium Analysis for Trade Policy

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  • Joseph F. Francois
  • Will Martin

Abstract

Most current modeling approaches identify very small gains from trade reform. In this chapter, we examine recent developments in the literature to assess whether standard modeling approaches are mis-specifying, understating, or overstating the gains from trade reform. Key areas where the impacts of trade barrier reduction appear to be understated include the measurement of barriers; the aggregation of these barriers; process productivity gains, particularly those resulting from reallocation of resources between firms; product quality improvements and expansion of product variety; factor supply; and investment of gains from trade.

Suggested Citation

  • Joseph F. Francois & Will Martin, 2010. "Chapter 13 Ex Ante," Frontiers of Economics and Globalization, in: New Developments in Computable General Equilibrium Analysis for Trade Policy, pages 379-434, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-8715(2010)0000007016
    DOI: 10.1108/S1574-8715(2010)0000007016
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