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How Deep Is Your Love? A Quantitative Spatial Analysis of the Transatlantic Trade Partnership

Author

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  • Krebs, Oliver

    () (University of Würzburg)

  • Pflüger, Michael P.

    () (University of Würzburg)

Abstract

This paper explores the quantitative consequences of transatlantic trade liberalization envisioned in a Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union. Our key innovation is to develop a new quantitative spatial trade model and to use an associated technique which is extraordinarily parsimonious and tightly connects theory and data. We take input-output linkages across industries into account and make use of the recently established World Input Output Database (WIOD). We also explore the consequences of labor mobility across local labor markets in Germany and the countries of the European Union. We address the considerable uncertainties connected both with the quantification of non-tariff trade barriers and the outcome of the negotiations by taking a corridor of trade liberalization paths into account.

Suggested Citation

  • Krebs, Oliver & Pflüger, Michael P., 2015. "How Deep Is Your Love? A Quantitative Spatial Analysis of the Transatlantic Trade Partnership," IZA Discussion Papers 9021, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9021
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    References listed on IDEAS

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    Cited by:

    1. Walter, Timo, 2018. "Trade and welfare effects of a potential free trade agreement between Japan and the United States," Hohenheim Discussion Papers in Business, Economics and Social Sciences 16-2018, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    2. repec:taf:jocebs:v:15:y:2017:i:3:p:205-213 is not listed on IDEAS
    3. Gabriel Felbermayr, 2016. "Economic Analysis of TTIP," ifo Working Paper Series 215, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Aichele Rahel & Felbermayr Gabriel J. & Heiland Inga, 2016. "TTIP and Intra-European Trade: Boon or Bane?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(6), pages 639-664, December.
    5. repec:zbw:zewexp:172787 is not listed on IDEAS

    More about this item

    Keywords

    international trade and trade policy; factor mobility; intermediate inputs; sectoral interrelations; transatlantic trade; TTIP;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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