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A general equilibrium, ex-post evaluation of the EU–Chile Free Trade Agreement

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  • Jean, Sébastien
  • Mulder, Nanno
  • Ramos, María Priscila

Abstract

This paper evaluates the impact on the Chilean economy of the EU–Chile Free Trade Agreement, in force since 2003, based on a computable general equilibrium (CGE) model. The evaluation method, inspired by structural decomposition methods, consists of double calibration of the model, to account for interactions between the agreement's impact and structural change in the Chilean economy. Trade flows are modeled at the detailed product level (six-digit level classification). The agreement is found to be slightly beneficial to Chile's economy on the whole, benefiting mainly unskilled labor, with gains concentrated in few sectors (fruits, wine, fisheries and seafood processing).

Suggested Citation

  • Jean, Sébastien & Mulder, Nanno & Ramos, María Priscila, 2014. "A general equilibrium, ex-post evaluation of the EU–Chile Free Trade Agreement," Economic Modelling, Elsevier, vol. 41(C), pages 33-45.
  • Handle: RePEc:eee:ecmode:v:41:y:2014:i:c:p:33-45
    DOI: 10.1016/j.econmod.2014.04.025
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    References listed on IDEAS

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    Cited by:

    1. Kenneth Baltzer, 2015. "Institutional and policy adjustments to implement Free Trade Agreements with the European Union: A developing country perspective," WIDER Working Paper Series 127, World Institute for Development Economic Research (UNU-WIDER).
    2. Farajzadeh, Zakariya & Zhu, Xueqin & Bakhshoodeh, Mohammad, 2017. "Trade reform in Iran for accession to the World Trade Organization: Analysis of welfare and environmental impacts," Economic Modelling, Elsevier, vol. 63(C), pages 75-85.
    3. Li, Chunding & Wang, Jing & Whalley, John, 2016. "Impact of mega trade deals on China: A computational general equilibrium analysis," Economic Modelling, Elsevier, vol. 57(C), pages 13-25.
    4. Jean-Christophe Bureau & Sébastien Jean, 2013. "International Agricultural Trade and Negotiations : Coping with a New Landscape," FOODSECURE Working papers 8, LEI Wageningen UR.
    5. repec:eee:ecmode:v:70:y:2018:i:c:p:147-158 is not listed on IDEAS
    6. Abbassi, Abdessalem & Tamini, Lota D. & Dakhlaoui, Ahlem, 2015. "Import quota allocation between regions under Cournot competition," Economic Modelling, Elsevier, vol. 51(C), pages 484-490.
    7. Xiang, Hongjin & Kuang, Yanxiang & Li, Chenhua, 2017. "Impact of the China–Australia FTA on global coal production and trade," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 65-78.
    8. World Bank, 2016. "Moldova Trade Study," World Bank Other Operational Studies 24043, The World Bank.

    More about this item

    Keywords

    Chile; European Union; CGE model; HS6 trade and tariffs; Trade elasticities;

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