Quantifying the EU-Japan Economic Partnership Agreement

Gabriel Felbermayr, Fukunari Kimura, Toshihiro Okubo, Marina Steininger and Gabriel J. Felbermayr
Authors registered in the RePEc Author Service: Gabriel J Felbermayr

No 7241, CESifo Working Paper Series from CESifo

Abstract: This paper provides a quantitative analysis of the new EU-Japan Economic Partnership Agreement (EPA), the biggest bilateral deal that both the EU and Japan have concluded so far. It employs a generalized variant of the Eaton-Kortum (2002) model, featuring multiple sectors, input-output linkages, services trade, and non-tariff barriers (NTBs). It uses the results of an econometric ex post analysis of a related existing FTA, the one between the EU and Korea, to approximate the expected reductions in the costs of NTBs. This approach yields long-run welfare effects for Japan of about 18 bn USD per year (0.31% of GDP) and of about 15 bn USD (0.10%) for the EU. On average, the agreement does not appear to harm third countries. 14% of the welfare gains inside the EPA stem from tariffs, the remaining 86% from NTB reform, and the services sector account for more than half. In the EU, value added in the agri-food sector goes up most, while in Japan the manufacturing and services sectors gain.

Keywords: free trade agreements; general equilibrium; quantitative trade models; Japan; European Union (search for similar items in EconPapers)
JEL-codes: F15 F17 N74 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp7241.pdf (application/pdf)

Related works:
Journal Article: Quantifying the EU-Japan Economic Partnership Agreement (2019)
Working Paper: Quantifying the EU-Japan Economic Partnership Agreement (2019)
Chapter: Quantifying the EU-Japan Economic Partnership Agreement (2018)
Working Paper: Quantifying the EU-Japan Economic Partnership Agreement (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_7241

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().