Examining Trade Response of Armington-Krugman-Melitz Encompassing Module in a CGE Model

Ken Itakura and Kazuhiko Oyamada

No 332513, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper examines how trade flows respond to liberalization shocks within a framework of recently implemented Armington-Krugman-Melitz Encompassing (AKME) module in the GTAP model. We follow the modeling strategy in Dixon and Rimmer (2012) and Oyamada (2013). We modify the comparative static GTAP model, which is a global CGE model widely used by researchers for quantifying policy impact. We redefine trade flow information stored in the benchmark GTAP Data Base, and implement a calibration procedure established in Oyamada (2013) and Oyamada (2014b). We run simulation of trade liberalization to draw a comparison between different trade specifications, decomposing the trade response in detail. Since there exits only a handful of attempts to compare the trade effects by examining the AKME module, we provide another results for further insights.

Keywords: International Relations/Trade; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 17
Date: 2014
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Related works:
Working Paper: Examining Trade Response of Armington-Krugman-Melitz Encompassing Module in a CGE Model (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332513

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