IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/333105.html
   My bibliography  Save this paper

Economic Impact of a Potential Investment Facilitation Agreement

Author

Listed:
  • Balistreri, Edward J.
  • Berger, Axel
  • Olekseyuk, Zoryana

Abstract

We quantify the impacts of a potential Investment Facilitation Agreement (IFA). The analysis is based on an innovative multi-region general equilibrium simulation model. The model extends the basic GTAPinGAMS structure. The model is calibrated to GTAP 10 (early-release) data characterizing bilateral trade and the social accounts. Consideration is given to Foreign Direct Investment (FDI) and monopolistic competition. The model shows empirically relevant gains associated with removal of investment barriers. Key drivers of the gains are identified in sensitivity analysis. We contribute to the relatively scarce research on investment facilitation and provide policymakers with information on potential effects of a IFA.

Suggested Citation

  • Balistreri, Edward J. & Berger, Axel & Olekseyuk, Zoryana, 2019. "Economic Impact of a Potential Investment Facilitation Agreement," Conference papers 333105, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333105
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/333105/files/9567.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruno Lanz & Thomas F Rutherford, 2016. "GTAPinGAMS: Multiregional and Small Open Economy Models," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(2), pages 1-77, December.
    2. James Markusen & Thomas F. Rutherford & David Tarr, 2017. "Trade and direct investment in producer services and the domestic market for expertise," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 19, pages 439-458, World Scientific Publishing Co. Pte. Ltd..
    3. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    4. Edward J. Balistreri & David G. Tarr & Hidemichi Yonezawa, 2015. "Deep Integration in Eastern and Southern Africa: What are the Stakes?," Journal of African Economies, Centre for the Study of African Economies, vol. 24(5), pages 677-706.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Balistreri, Edward J. & Tarr, David G., 2020. "Comparison of deep integration in the Melitz, Krugman and Armington models: The case of The Philippines in RCEP," Economic Modelling, Elsevier, vol. 85(C), pages 255-271.
    2. María C. Latorre & Zoryana Olekseyuk & Hidemichi Yonezawa, 2020. "Foreign multinationals in service sectors: A general equilibrium analysis of Brexit," The World Economy, Wiley Blackwell, vol. 43(11), pages 2830-2859, November.
    3. Veronika Movchan & Thomas F. Rutherford & David G. Tarr & Hidemichi Yonezawa, 2023. "The importance of deep integration in preferential trade agreements: the case of a successfully implemented Ukraine–Turkey free trade agreement," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(1), pages 1-50, February.
    4. Balistreri, Edward J. & Tarr, David G., 2016. "Comparison of Welfare Results from Trade Liberalization in the Armington, Krugman and Melitz Models: Impacts with features of real economies," Conference papers 332773, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Balistreri, Edward J. & Tarr, David G., 2017. "Market Structure and the impact of RCEP in The Philippines: What are the Differences between Melitz, Krugman and Armington Models," Conference papers 332835, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. repec:zbw:bofitp:2017_002 is not listed on IDEAS
    7. Christoph Boehringer & Edward Balistreri & Thomas Rutherford, 2018. "Quantifying Disruptive Trade Policies," Working Papers V-415-18, University of Oldenburg, Department of Economics, revised Nov 2018.
    8. Zoryana Olekseyuk & Edward J. Balistreri, 2018. "Trade liberalization gains under different trade theories: a case study for Ukraine," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(3), pages 507-542, August.
    9. Edward J. Balistreri & Zoryana Olekseyuk, 2021. "Economic Impacts of Investment Facilitation," Center for Agricultural and Rural Development (CARD) Publications 21-wp615, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    10. Edward J. Balistreri & Zoryana Olekseyuk & David G. Tarr, 2017. "Privatisation and the unusual case of Belarusian accession to the WTO," The World Economy, Wiley Blackwell, vol. 40(12), pages 2564-2591, December.
    11. C. Wernerheim & M. Waples, 2013. "Demand patterns and Canada’s trade in services," International Economics and Economic Policy, Springer, vol. 10(2), pages 159-181, June.
    12. Edward J. Balistreri & Zoryana Olekseyuk & David G. Tarr, 2017. "Privatisation and the unusual case of Belarusian accession to the WTO," The World Economy, Wiley Blackwell, vol. 40(12), pages 2564-2591, December.
    13. Latorre, María C. & Yonezawa, Hidemichi, 2018. "Stopped TTIP? Its potential impact on the world and the role of neglected FDI," Economic Modelling, Elsevier, vol. 71(C), pages 99-120.
    14. Christoph Böhringer & Thomas F. Rutherford & David G. Tarr & Natalia Turdyeva, 2017. "Market Structure and the Environmental Implications of Trade Liberalization: Russia’s Accession to the World Trade Organization," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 20, pages 459-485, World Scientific Publishing Co. Pte. Ltd..
    15. Edward J. Balistreri & David G. Tarr, 2019. "Mathematics of the Armington, Krugman and Melitz Models with Multiple Sectors and Heterogeneous Regions, with Detailed Derivations," Center for Agricultural and Rural Development (CARD) Publications 19-wp596, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    16. Zoryana Olekseyuk, 2016. "Modeling of FDI in business services: Additional effects in case of Ukraine's European integration," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(7), pages 1010-1043, October.
    17. Latorre, María C. & Yonezawa, Hidemichi & Zhou, Jing, 2018. "A general equilibrium analysis of FDI growth in Chinese services sectors," China Economic Review, Elsevier, vol. 47(C), pages 172-188.
    18. Olekseyuk, Zoryana, 2015. "The EU-Ukraine Deep and Comprehensive Free Trade Agreement and the Importance of FDI," Conference papers 332588, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Fletcher, Stanley M. & Nadolnyak, Denis A., 2005. "Accommodating Imperfect Competition in A Model of World Peanut Trade," 2005 Annual meeting, July 24-27, Providence, RI 19460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Chen, Natalie & Juvenal, Luciana, 2022. "Markups, quality, and trade costs," Journal of International Economics, Elsevier, vol. 137(C).
    21. Yane, Haruka & Yamada, Hiroyuki, 2015. "Import Competition from Neighbors: Impacts on Performances of Enterprises in Vietnam," Conference papers 332621, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:333105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.