Economic and Welfare Impacts of Prospective India – Australia FTA Using GTAP and Smart Models

International Journal of Business and Emerging Markets, Vol. 3, No. 4, pp. 396-417, 2011

Posted: 25 Jan 2012

See all articles by Shahid Ahmed

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics

Date Written: December 1, 2011

Abstract

This study investigates the potential economic impacts of prospective India – Australia Free Trade Agreement (FTA) using a Computable General Equilibrium (CGE) model. Four hypothetical tariff liberalization scenarios are examined in this study focusing on short and long run. The study reveals that both India and Australia gain in terms of welfare. Allocative efficiency for Australia and India broadly improves, suggesting that net trade creation occurs. The study recommends partial and selected tariff liberalization as the best strategy in India's interest while negotiating prospective India – Australia FTA.

Keywords: computable general equilibrium, CGE models, economic integration, emerging markets, GTAP, global trade analysis project; SMART, India Australia FTA, free trade agreements, tariff liberalisation

Suggested Citation

Ahmed, Shahid, Economic and Welfare Impacts of Prospective India – Australia FTA Using GTAP and Smart Models (December 1, 2011). International Journal of Business and Emerging Markets, Vol. 3, No. 4, pp. 396-417, 2011. Available at SSRN: https://ssrn.com/abstract=1991919

Shahid Ahmed (Contact Author)

Jamia Millia Islamia (A Central University) - Economics ( email )

Jamia Nagar
New Delhi, 110025
India

HOME PAGE: http://jmi.ac.in/economics/faculty-members/Prof_Shahid_Ahmed-1783

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