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Creating a Disaggregated CGE Model for Trade Policy Analysis: GTAP-MVH

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  • Peter B. Dixon
  • Maureen Rimmer
  • Nhi Tran

Abstract

Thousands of economists spread across almost every country use the GTAP model to analyze trade policies including trade wars and trade agreements. GTAP has an impressive regional coverage (140 countries) but the standard commodity coverage (57 commodities/industries) can cause frustration when tariffs on narrowly defined products are being negotiated. This paper sets out a method for disaggregating commodities/industries in computable general equilibrium models such as GTAP and applies it to GTAP's motor vehicle sector. The method makes use of readily available highly disaggregated trade data supplemented by detailed input-output data where available and data from a variety of other sources such as commercial market reports.

Suggested Citation

  • Peter B. Dixon & Maureen Rimmer & Nhi Tran, 2019. "Creating a Disaggregated CGE Model for Trade Policy Analysis: GTAP-MVH," Centre of Policy Studies/IMPACT Centre Working Papers g-291, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-291
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    References listed on IDEAS

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    1. Angel Aguiar & Badri Narayanan & Robert McDougall, 2016. "An Overview of the GTAP 9 Data Base," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(1), pages 181-208, June.
    2. Calderon, Cesar & Chong, Alberto & Stein, Ernesto, 2007. "Trade intensity and business cycle synchronization: Are developing countries any different?," Journal of International Economics, Elsevier, vol. 71(1), pages 2-21, March.
    3. Ferrantino, Michael J. & Liu, Xuepeng & Wang, Zhi, 2012. "Evasion behaviors of exporters and importers: Evidence from the U.S.–China trade data discrepancy," Journal of International Economics, Elsevier, vol. 86(1), pages 141-157.
    4. Gehlhar, Mark J., 1996. "Reconciling Bilateral Trade Data For Use In Gtap," Technical Papers 28714, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Peter B. Dixon & Maureen T. Rimmer & Robert G. Waschik, 2017. "Updating USAGE: Baseline and Illustrative Application," Centre of Policy Studies/IMPACT Centre Working Papers g-269, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Yinhua Mai & Peter B. Dixon & Maureen Rimmer, 2010. "CHINAGEM: A Monash-Styled Dynamic CGE Model of China," Centre of Policy Studies/IMPACT Centre Working Papers g-201, Victoria University, Centre of Policy Studies/IMPACT Centre.
    7. Peter B. Dixon & Maureen Rimmer & Nhi Tran, 2019. "GTAP-MVH, A Model for Analysing the Worldwide Effects of Trade Policies in the Motor Vehicle Sector: Theory and Data," Centre of Policy Studies/IMPACT Centre Working Papers g-290, Victoria University, Centre of Policy Studies/IMPACT Centre.
    8. Gehlhar, Mark, 1996. "Reconciling Bilateral Trade Data for Use in GTAP," GTAP Technical Papers 313, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    9. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    10. Shaar, Karam, 2017. "Reconciling International Trade Data," MPRA Paper 81572, University Library of Munich, Germany.
    11. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Peter B. Dixon & Maureen T. Rimmer, 2022. "Introducing the effects of foreign direct investment into the GTAP-GAC model," Centre of Policy Studies/IMPACT Centre Working Papers g-333, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Dixon, Peter B. & Rimmer, Maureen T., 2022. "Winners and losers in global supply chain trade: Embedding GSC in CGE," Economic Modelling, Elsevier, vol. 106(C).
    3. Yuan, Wen Jin & Antonio, Katherine & Butcher, Arona, 2022. "Incorporating Industry-Specific Wages and Unemployment into the GTAP Model: U.S.-EU Trade Liberalization Scenarios," Conference papers 333450, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Jia, Zhijie & Lin, Boqiang, 2022. "CEEEA2.0 model: A dynamic CGE model for energy-environment-economy analysis with available data and code," Energy Economics, Elsevier, vol. 112(C).

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    More about this item

    Keywords

    GTAP disaggregation; motor vehicle sector; intra-NAFTA tariffs;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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