Economic Effects of Free Trade between the EU and Russia
This study simulates the economic effects of eastern enlargement of the EU and an EU-Russian free trade area. The main emphasis of the paper is on the effect this would have on the Russian economy. The simulations were carried out with a GTAP computable general equilibrium model, using the most recent GTAP database 6.0 beta, which takes the former Europe agreements between the EU-15 and the eight new Central and Eastern European member states into account. The results confirm the earlier findings that a free trade agreement with the EU is beneficial for Russia in terms of total output but not necessarily in terms of economic welfare when measured by equivalent variation. The main reason behind this is the deterioration that would occur in Russia’s terms of trade. Improved productivity in Russia would, however, make the free trade agreement with the EU advantageous.
|Date of creation:||May 2005|
|Date of revision:|
|Contact details of provider:|| Postal: ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium|
Phone: +32 2 229 3911
Fax: +32 2 219 4151
Web page: http://www.enepri.org
More information through EDIRC
|Order Information:|| Postal: ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium|
Web: http://www.enepri.org Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- André Sapir, 2000.
"Trade regionalism in Europe: towards an integrated approach,"
ULB Institutional Repository
2013/8142, ULB -- Universite Libre de Bruxelles.
- André Sapir, 2000. "Trade Regionalism in Europe: Towards an Integrated Approach," Journal of Common Market Studies, Wiley Blackwell, vol. 38(1), pages 151-162, 03.
- André Sapir, 2001. "Trade regionalism in Europe: towards an integrated approach," ULB Institutional Repository 2013/8144, ULB -- Universite Libre de Bruxelles.
- Risto Vaittinen, 2000. "Eastern Enlargement of the European Union - Transition in applicant countries and evaluation of the economic prospects with a dynamic CGE-model," Research Reports 64, Government Institute for Economic Research Finland (VATT).
- Howe, Howard, 1975. "Development of the extended linear expenditure system from simple saving assumptions," European Economic Review, Elsevier, vol. 6(3), pages 305-310, July.
- Thomas W. Hertel & Padma Swaminathan, 1996. "Introducing Monopolistic Competition into the GTAP Model," GTAP Technical Papers 309, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Bhagwati, Jagdish & Greenaway, David & Panagariya, Arvind, 1998. "Trading Preferentially: Theory and Policy," Economic Journal, Royal Economic Society, vol. 108(449), pages 1128-48, July.
- Pekka Sulamaa & Mika Widgrén, 2004.
"EU-Enlargement and Beyond: A Simulation Study on EU and Russia Integration,"
356, Government Institute for Economic Research Finland (VATT).
- Pekka Sulamaa & Mika WidgrÃ©n, 2004. "EU-Enlargement and Beyond: A Simulation Study on EU and Russia Integration," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 31(4), pages 307-323, December.
- Sulamaa, Pekka & Widgrén, Mika, 2004. "EU Enlargement and Beyond: A Simulation Study on EU and Russia Integration," CEPR Discussion Papers 4720, C.E.P.R. Discussion Papers.
- Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR;CES;MSH, vol. 12(24), pages 125-176, 04.
- Hanoch, Giora, 1975. "Production and Demand Models with Direct or Indirect Implicit Additivity," Econometrica, Econometric Society, vol. 43(3), pages 395-419, May.
- Ianchovichina, Elena & Robert McDougall, 2000. "Theoretical Structure of Dynamic GTAP," GTAP Technical Papers 480, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Jesper Jensen & Thomas Rutherford & David Tarr, 2014.
"The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization,"
World Scientific Book Chapters,
in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 6, pages 125-149
World Scientific Publishing Co. Pte. Ltd..
- Jesper Jensen & Thomas Rutherford & David Tarr, 2007. "The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 482-506, 08.
- Jensen, Jesper & Rutherford, Thomas & Tarr, David, 2004. "The impact of liberalizing barriers to foreign direct investment in services - the case of Russian accession to the World Trade Organization," Policy Research Working Paper Series 3391, The World Bank.
- Huff, Karen & Thomas W. Hertel, 2001. "Decomposing Welfare Changes in GTAP," GTAP Technical Papers 308, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
When requesting a correction, please mention this item's handle: RePEc:epr:enepwp:036. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CEPS)
If references are entirely missing, you can add them using this form.