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General Equilibrium Analysis of DDA Trade Liberalization : Assessment of Alternative Scenarios

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  • Nakgyoon Choi

    (Korea Institute for International Economic Policy)

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    Abstract

    This paper aims to implement the simulation studies using a CGE approach to identify ideas on how to finalize the DDA negotiations by making some mutual concessions and deal with contentious issues yet to be agreed. The simulation results of this paper, which lay between those of the previous literature, indicate that the DDA negotiations will boost the global economy to a substantial degree. It reveals that the world GDP effects will amount to US$ 49.9~186.2 billion (0.12~0.45%) and the wel- fare gain will amount to US$ 49.7~157.7 billion. The GDP growth effects are mainly due to effects of trade expansion, which amount to US$ 265.3~382.0 billion. The simulation result also indicates that developed countries need to consider positively the arguments of developing countries on the controversial issues related to agriculture. In return for the concessions by the developed countries, the developing countries will likely accept further discussions related to the sectoral proposals and services liberalization.

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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 23109.

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    Date of creation: Jan 2010
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    Handle: RePEc:eab:tradew:23109

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    Related research

    Keywords: DDA negotiations; CGE; Simulation;

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    1. Ianchovichina, Elena & Robert McDougall, 2000. "Theoretical Structure of Dynamic GTAP," GTAP Technical Papers, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University 480, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Warwick J. McKibbin & Adele Morris & Peter J. Wilcoxen & Yiyong Cai, 2009. "Consequences Of Alternative U.S. Cap-And-Trade Policies: Controlling Both Emissions And Costs," CAMA Working Papers, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University 2009-18, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    3. Francois, Joseph & McDonald, Brad & Nordström, Håkan, 1996. "Trade Liberalization and Investment in a Multilateral Framework," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1411, C.E.P.R. Discussion Papers.
    4. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2005. "Doha Merchandise Trade Reform: WhatÂ’s at Stake for Developing Countries?," Centre for International Economic Studies Working Papers, University of Adelaide, Centre for International Economic Studies 2005-16, University of Adelaide, Centre for International Economic Studies.
    5. Sébastien Dessus & Kiichiro Fukasaku & Raed Safadi, 2001. "Multilateral Tariff Liberalisation and the Developing Countries," OECD Development Centre Policy Briefs, OECD Publishing 18, OECD Publishing.
    6. Anderson, Kym & Valenzuela, Ernesto, 2005. "Do Global Trade Distortions Still Harm Developing Country Farmers?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5337, C.E.P.R. Discussion Papers.
    7. Francois, Joseph & Bradley McDonald, 1996. "Liberalization and Capital Accumulation in the GTAP Model," GTAP Technical Papers, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University 310, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Bchir, Mohamed Hedi & Jean, Sebastien & Laborde, David, 2005. "Binding Overhang and Tariff-Cutting Formulas," Working Papers, TRADEAG - Agricultural Trade Agreements 18873, TRADEAG - Agricultural Trade Agreements.
    9. Matthew Adler & Claire Brunel & Gary Clyde Hufbauer & Jeffrey J. Schott, 2009. "What’s on the Table? The Doha Round as of August 2009," Working Paper Series, Peterson Institute for International Economics WP09-6, Peterson Institute for International Economics.
    10. Warwick J. McKibbin & Adele Morris & Peter J. Wilcoxen & Yiyong Cai, 2009. "Consequences Of Alternative U.S. Cap-And-Trade Policies: Controlling Both Emissions And Costs," CAMA Working Papers, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University 2009-18, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
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