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Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach

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  • ABE Kazutomo

Abstract

This paper presents assessments of the economic impacts of free trade agreements (FTAs) relating to Japan. The analysis relies on a simulation with a computable equilibrium model. The impacts of various combinations of FTAs are assessed to draw policy implications. This paper first reviews the theoretical framework, together with the specifications of the simulation model. Then, simulations in the various cases cover both Japan's bilateral FTAs and regional FTAs including Japan. The final section is a short summary of implications from the simulation work.

Suggested Citation

  • ABE Kazutomo, 2007. "Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach," Discussion papers 07053, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:07053
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    1. Carsten Kowalczyk, 1992. "Paradoxes in integration theory," Open Economies Review, Springer, vol. 3(1), pages 51-59, February.
    2. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics,in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier.
    3. Baldwin, Richard E, 1992. "Measurable Dynamic Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 162-174, February.
    4. Krueger, Anne O., 1997. "Free trade agreements versus customs unions," Journal of Development Economics, Elsevier, pages 169-187.
    5. Francois, Joseph & Bradley McDonald, 1996. "Liberalization and Capital Accumulation in the GTAP Model," GTAP Technical Papers 310, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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