| |
N° 94-95 |
|
|
| Issues 2-3 2003 |
| Scenarios for
Trade Integration in the Americas |
|
Xinshen Diao
Eugenio Díaz-Bonilla
Sherman Robinson
|
|
| This paper analyzes two potential
trade liberalization scenarios: a Free Trade Area of the Americas (FTAA)
and an agreement between MERCOSUR and the European Union (EU). The paper
utilizes a world general equilibrium model with some macro elements such
as rigidities in wages and exchange rates. The empirical results show that
the two regional integration scenarios create trade and increase welfare
for the participants (more for the Latin American countries than for either
the US or the EU) with little impact on non-participants. Realizing the
potential benefits will also require adequate macroeconomic policies to
avoid disruptive swings in trade balances. |
Abstract |
| |
Full text |
| Thematic
issue: "Agreements on Trade Liberalisation: Latin America and the Caribbean" |
|
| Trade; Regional
Integration; General Equilibrium Models; Developing Countries |
Keywords |
| C5; E1; F1 |
JEL classification |
|
Order form |
