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Distance measures between free trade and autarky for the world economy

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  • Riezman, Raymond
  • Whalley, John
  • Zhang, Shunming

Abstract

We develop a methodology to determine numerically how globalized the world economy is. We present a global general equilibrium model capturing major OECD economies and a residual rest of world for which alternative metrics of distance between observed, free trade and autarky equilibria can be developed. We use data for 2000 and report a number of distance measures between the 2000 observed trade restricted equilibrium and both free trade and autarky equilibria noting the absence of prior literature on metrics of distance between equilibria. The measures are used to determine the degree to which the world economy is globalized.

Suggested Citation

  • Riezman, Raymond & Whalley, John & Zhang, Shunming, 2011. "Distance measures between free trade and autarky for the world economy," Economic Modelling, Elsevier, vol. 28(4), pages 2000-2012, July.
    • Handle: RePEc:eee:ecmode:v:28:y:2011:i:4:p:2000-2012
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    References listed on IDEAS

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    1. Mas-Colell,Andreu, 1990. "The Theory of General Economic Equilibrium," Cambridge Books, Cambridge University Press, number 9780521388702, January.
    2. Kehoe, Timothy J., 1991. "Computation and multiplicity of equilibria," Handbook of Mathematical Economics, in: W. Hildenbrand & H. Sonnenschein (ed.), Handbook of Mathematical Economics, edition 1, volume 4, chapter 38, pages 2049-2144, Elsevier.
    3. Lisandro Abrego & John Whalley, 2003. "Goods market responses to trade shocks and trade and wages decompositions," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 747-757, August.
    4. Raymond G. Riezman & John Whalley & Shunming Zhang, 2013. "Metrics capturing the degree to which individual economies are globalized," Applied Economics, Taylor & Francis Journals, vol. 45(36), pages 5046-5061, December.
    5. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550.
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    Cited by:

    1. Irena Mikolajun & Jean-Marie Viaene, 2015. "Trade, Factor Mobility and the Extent of Economic Integration: Theory and Evidence," CESifo Working Paper Series 5481, CESifo.
    2. Irena Mikolajun & Jean-Marie Viaene, 2015. "Trade, Factor Mobility and the Extent of Economic Integration: Theory and Evidence," Tinbergen Institute Discussion Papers 15-096/VI, Tinbergen Institute.
    3. Irena Mikolajun & Jean-Marie Viaene, 2019. "Is Hard Brexit Detrimental to EU Integration? Theory and Evidence," Open Economies Review, Springer, vol. 30(4), pages 621-654, September.
    4. Harry Bowen & Haris Munandar & Jean-Marie Viaene, 2010. "How integrated is the world economy?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 389-414, September.
    5. Irena Mikolajun & Jean-Marie Viaene, 2018. "Is Hard Brexit Detrimental to EU Integration? Theory and Evidence," CESifo Working Paper Series 7199, CESifo.
    6. Chunding Li & John Whalley, 2014. "How Close is Asia to Already Being A Trade Bloc?," NBER Working Papers 20424, National Bureau of Economic Research, Inc.
    7. Huang Helen Hui & Wang Hui & Wei Zexin & Xia Jiawei & Zhang Shunming, 2021. "Restrictions of the Islamic Financial System and Counterpart Financial Support for Xinjiang," Journal of Systems Science and Information, De Gruyter, vol. 9(2), pages 105-130, April.
    8. Li, Chunding & Whalley, John, 2017. "How close is Asia already to being a trade bloc?," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 847-864.

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