Trade and investment in Latin America and Asia: Perspectives from further integration

Antoine Bouët, Valdete Berisha-Krasniqi, Carmen Estrades and David Laborde Debucquet

Journal of Policy Modeling, 2012, vol. 34, issue 2, 193-210

Abstract: Recently, Asian and Latin American countries have engaged in a series of negotiations to liberalize trade and investment flows. This paper analyzes the potential impact of a free trade agreement (FTA) between countries of both regions, applying a world dynamic general equilibrium model (MIRAGE). An important feature of the model is that it includes a new way of modeling bilateral investment flows and bilateral investment agreements. This is especially important given that investment plays a major role in the economic relations of the two regions. Our results show that most countries will benefit from the agreement; nevertheless, the gains of Latin American countries will be higher, especially when all Asian countries participate. In addition, Latin America benefits from increased FDI inflows, mainly from developed Asian countries.

Keywords: Trade liberalization; FTA; Asia; Latin America; CGE modeling (search for similar items in EconPapers)
JEL-codes: C68 F13 F15 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:34:y:2012:i:2:p:193-210

DOI: 10.1016/j.jpolmod.2011.09.004

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