Chapter 13 Ex Ante

Abstract

Most current modeling approaches identify very small gains from trade reform. In this chapter, we examine recent developments in the literature to assess whether standard modeling approaches are mis-specifying, understating, or overstating the gains from trade reform. Key areas where the impacts of trade barrier reduction appear to be understated include the measurement of barriers; the aggregation of these barriers; process productivity gains, particularly those resulting from reallocation of resources between firms; product quality improvements and expansion of product variety; factor supply; and investment of gains from trade.

Citation

Francois, J.F. and Martin, W. (2010), "Chapter 13 Ex Ante", Gilbert, J. (Ed.) New Developments in Computable General Equilibrium Analysis for Trade Policy (Frontiers of Economics and Globalization, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 379-434. https://doi.org/10.1108/S1574-8715(2010)0000007016