Economic impact of freer trade in Latin America and the Caribbean: A GTAP Analysis

• Kakali Mukhopadhyay ^[1] ; Paul J. Thomassin ^[1] ; Debesh Chakraborty ^[2]
  1. [1] McGill University

     McGill University

     Canadá

     
  2. [2] Jadavpur University

     Jadavpur University

     India

     
• Localización: Latin American Journal of Economics: formerly Cuadernos de Economía, ISSN-e 0719-0433, Vol. 49, Nº. 2, 2012, págs. 147-183
• Idioma: inglés
• DOI: 10.7764/laje.49.2.147
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• Resumen

  • The recent worldwide economic conditions resulting from the financial crisis call for greater cooperation. This paper assesses the impact of trade reforms between Latin America and the Caribbean (LAC) and India and LAC and the EU (European Union) at 2020 using a global computable general equilibrium (CGE) model. The findings show that LAC-EU tariff reduction appears to be beneficial for both regions in the short run, though not so in the long run, while the LAC-India tariff reduction impact appears to be more beneficial for both economies in the long run. This important finding emphasizes the scope and opportunities for south-south cooperation in the long run.