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A Global Baltic:Potential Gains from Trade Liberalisation in the Baltic Sea States

  • Susanna Kinnman

    ()

    (Economist at the Swedish National Board of Trade)

  • Magnus Lodefalk

    ()

    (Economist at the Swedish National Board of Trade)

Though the Baltic Sea countries have displayed substantial reform-facilitated growth and trading activity over the last decade, significant trade barriers still exist. We analyse their implications, using a CGEmodel. Besides the “usual suspects” (tariffs, subsidies, and service barriers) and trade facilitation, we address non-tariff-measures (NTM) in a separate scenario. We find that reforms would substantially boost national income and trade, especially for the group of emerging economies. Income gains are primarily due to elimination of dead-weight losses caused by rules and regulations and improved resource allocation. Jointly, the simulations indicate a move towards services and industrial production and exports.

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Article provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.

Volume (Year): 9 (2009)
Issue (Month): 1 (July)
Pages: 55-79

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Handle: RePEc:bic:journl:v:9:y:2009:i:1:p:55-79
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  1. Joseph Francois & Hans Van Meijl & Frank Van Tongeren, 2005. "Trade liberalization in the Doha Development Round," Economic Policy, CEPR;CES;MSH, vol. 20(42), pages 349-391, 04.
  2. Pekka Sulamaa & Mika Widgrén, 2004. "EU-Enlargement and Beyond: A Simulation Study on EU and Russia Integration," Empirica, Springer, vol. 31(4), pages 307-323, December.
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  5. W. Jill Harrison & J. Mark Horridge & K.R. Pearson, 1999. "Decomposing Simulation Results with Respect to Exogenous Shocks," Centre of Policy Studies/IMPACT Centre Working Papers ip-73, Victoria University, Centre of Policy Studies/IMPACT Centre.
  6. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "Poverty effects of Russia's WTO accession : modeling"real"households and endogenous productivity effects," Policy Research Working Paper Series 3473, The World Bank.
  7. World Bank, 2003. "Global Economic Prospects 2004 : Realizing the Development Promise of the Doha Agenda," World Bank Publications, The World Bank, number 14782, November.
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