Assessing the Impacts of FTAs: Issues for the Small, Open and Regionally Integrated Economy

TRADE POLICY RESEARCH 2007, Dan Ciuriak, ed.. pp. 101-122, Ottawa: Department of Foreign Affairs and International Trade, 2008

22 Pages Posted: 9 Feb 2010

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; C.D. Howe Institute; Centre for International Governance Innovation (CIGI); BKP Development Research & Consulting GmbH; Asia Pacific Foundation of Canada

Date Written: 2008

Abstract

The computable general equilibrium model has become the workhorse tool for assessing the impacts of bilateral trade liberalization. This paper draws on recent experience within Foreign Affairs and International Trade Canada in modeling the impacts of potential free trade agreements with various partners to highlight (a) the importance of microeconomic closures (and in particular the implicit assumptions concerning the elasticities of supply of capital and labour) that are suitable for the circumstances of the economy in question; (b) the likelihood that regional economic integration will result in significant intraregional “leakage” of impacts of FTA effects with extraregional partners; (c) the need to take into account institutional features such as producer price supports when liberalizing border measures; and (d) the possibility of linking the results from the gravity model literature on the trade impacts of FTAs with CGE model-based results — the former reflecting the “all-in” impacts, the latter the tariff effects alone, and the difference impliedly reflecting the non-tariff aspects of FTAs.

Keywords: free trade agreements, FTAs, CGE model, closure, regional integration

JEL Classification: F14, F15, F17

Suggested Citation

Ciuriak, Dan, Assessing the Impacts of FTAs: Issues for the Small, Open and Regionally Integrated Economy (2008). TRADE POLICY RESEARCH 2007, Dan Ciuriak, ed.. pp. 101-122, Ottawa: Department of Foreign Affairs and International Trade, 2008. Available at SSRN: https://ssrn.com/abstract=1549587

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639
Germany

Asia Pacific Foundation of Canada ( email )

Canada

HOME PAGE: http://ciuriakconsulting.com/

Register to save articles to
your library

Register

Paper statistics

Downloads
45
Abstract Views
446
PlumX Metrics