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Impacts of Trade Reform: Sensitivity of Model Results to Key Assumptions

Listed author(s):
  • Ernesto Valenzuela

    ()

    (School of Economics, University of Adelaide)

  • Kym Anderson

    ()

    (School of Economics, University of Adelaide)

  • Thomas Hertel

    ()

    (Department of Agricultural Economics, Purdue University)

The WTOÂ’s Doha Development Agenda has generated demand for estimates of the potential economic consequences of global trade reform. Recent improvements in the GTAP dataset have provided a much better representation of tariff restrictions as of 2001. However, despite its use by most global trade modelers, substantial differences in results emerge from different computable general equilibrium exercises. To help understand these differences, this paper examines the sensitivity of full global and regional trade liberalization results from the GTAP model, using the GTAP version 6.1 database, to different assumptions about factor mobility, fiscal neutrality, macro-economic closure, and trade (Armington) elasticities.

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File URL: http://www.adelaide.edu.au/cies/papers/0709.pdf
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Paper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2007-09.

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Length: 48 pages
Date of creation: Oct 2007
Handle: RePEc:adl:cieswp:2007-09
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