Welfare Impacts of Preferential Trade Liberalization in South Asia

Focusing on the global trading relationship aggregated at the level of 15 regions and 10 sectors, we investigate in this paper the welfare effects of preferential trade liberalisation in South Asia from several simulation perspectives. The static version of the Global Trade Analysis Project (GTAP) m...

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Main Authors: Islam, A., Salim, Ruhul, Bloch, Harry
Format: Journal Article
Published: Tennessee State University College of Business 2015
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/33469
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author Islam, A.
Salim, Ruhul
Bloch, Harry
author_facet Islam, A.
Salim, Ruhul
Bloch, Harry
author_sort Islam, A.
building Curtin Institutional Repository
collection Online Access
description Focusing on the global trading relationship aggregated at the level of 15 regions and 10 sectors, we investigate in this paper the welfare effects of preferential trade liberalisation in South Asia from several simulation perspectives. The static version of the Global Trade Analysis Project (GTAP) model shows that countries that are initially more protected (such as India) are likely to capture the lion’s share of the gain from the liberalization scheme. Countries that maintain status quo are the losers; prominent among them are the EU 25 and the North America region. However, these results are dramatically changed in the dynamic version of the GTAP model. In terms of deviations from the baseline scenario, the regional integration policy in South Asia turns out to be net welfare reducing for both the region and the rest of the world.
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spelling curtin-20.500.11937-334692017-09-13T15:30:24Z Welfare Impacts of Preferential Trade Liberalization in South Asia Islam, A. Salim, Ruhul Bloch, Harry Welfare South Asia Regional Integration Focusing on the global trading relationship aggregated at the level of 15 regions and 10 sectors, we investigate in this paper the welfare effects of preferential trade liberalisation in South Asia from several simulation perspectives. The static version of the Global Trade Analysis Project (GTAP) model shows that countries that are initially more protected (such as India) are likely to capture the lion’s share of the gain from the liberalization scheme. Countries that maintain status quo are the losers; prominent among them are the EU 25 and the North America region. However, these results are dramatically changed in the dynamic version of the GTAP model. In terms of deviations from the baseline scenario, the regional integration policy in South Asia turns out to be net welfare reducing for both the region and the rest of the world. 2015 Journal Article http://hdl.handle.net/20.500.11937/33469 10.1353/jda.2015.0070 Tennessee State University College of Business fulltext
spellingShingle Welfare
South Asia
Regional Integration
Islam, A.
Salim, Ruhul
Bloch, Harry
Welfare Impacts of Preferential Trade Liberalization in South Asia
title Welfare Impacts of Preferential Trade Liberalization in South Asia
title_full Welfare Impacts of Preferential Trade Liberalization in South Asia
title_fullStr Welfare Impacts of Preferential Trade Liberalization in South Asia
title_full_unstemmed Welfare Impacts of Preferential Trade Liberalization in South Asia
title_short Welfare Impacts of Preferential Trade Liberalization in South Asia
title_sort welfare impacts of preferential trade liberalization in south asia
topic Welfare
South Asia
Regional Integration
url http://hdl.handle.net/20.500.11937/33469