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dc.titleTrade and Welfare Effects of the Great Liberalization in Latin America and the Caribbean: A General Equilibrium Approach
dc.contributor.authorCai, Charles
dc.contributor.authorLi, Kun
dc.contributor.orgunitProductivity, Trade and Innovation Sector
dc.coverageLatin America and the Caribbean
dc.date.available2020-01-31T13:30:00
dc.date.issue2020-01-31T00:00:00
dc.description.abstractUsing the multisector, heterogeneous-firm general equilibrium trade model of Caliendo et al. (2017), this paper carries out five exercises to understand the trade and welfare effect of trade liberalization in Latin America and the Caribbean (LAC). First, it evaluates the overall tariff reduction effect (of both MFN and preferential tariffs) on all 26 LAC countries between 1990 and 2015. Second, it evaluates the tariff reduction effect on each LAC26 country independently. Third, it examines the effect of five different LAC preferential trade agreements. Fourth, it runs a policy experiment to ascertain the effect of the least liberalized countries in the region lowering their MFN tariff to the average OECD level. Last, it analyzes the effect of a complete free trade agreement between the LAC26 countries.
dc.format.extent30
dc.identifier.doihttp://dx.doi.org/10.18235/0002171
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Trade_and_Welfare_Effects_of_the_Great_Liberalization_in_Latin_America_and_the_Caribbean_A_General_Equilibrium_Approach_en.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectIntegration and Trade
dc.subjectTrade Policy
dc.subjectTariff System
dc.subjectTrade Agreement
dc.subjectFree Trade Agreement
dc.subject.jelcodeF15 - Economic Integration
dc.subject.jelcodeF13 - Trade Policy • International Trade Organizations
dc.subject.jelcodeF60 - Economic Impacts of Globalization: General
dc.subject.jelcodeF12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation
dc.subject.jelcodeF62 - Macroeconomic Impacts
dc.subject.jelcodeF17 - Trade Forecasting and Simulation
dc.subject.keywordsTrade liberation; welfare; general equilibrium model; Latin America and Caribbean
idb.identifier.pubnumberIDB-DP-00742
idb.operationRG-E1542
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