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Economic Impact of Freer Trade in Latin America and the Caribbean: A GTAP Analysis

Author

Listed:
  • Kakali Mukhopadhyay
  • Paul J. Thomassin
  • Debesh Chakraborty

Abstract

The recent worldwide economic conditions resulting from the financial crisis call for greater cooperation. This paper assesses the impact of trade reforms between Latin America and the Caribbean (LAC) and India and LAC and the EU (European Union) at 2020 using a global computable general equilibrium (CGE) model. The findings show that LAC-EU tariff reduction appears to be beneficial for both regions in the short run, though not so in the long run, while the LAC-India tariff reduction impact appears to be more beneficial for both economies in the long run. This important finding emphasizes the scope and opportunities for south-south cooperation in the long run.

Suggested Citation

  • Kakali Mukhopadhyay & Paul J. Thomassin & Debesh Chakraborty, 2012. "Economic Impact of Freer Trade in Latin America and the Caribbean: A GTAP Analysis," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 147-183, November.
    • Handle: RePEc:ioe:cuadec:v:49:y:2012:i:2:p:147-183
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    File URL: http://www.economia.uc.cl/docs/107764_laje_492147.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F18 - International Economics - - Trade - - - Trade and Environment
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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