The Gains from Trade in a New Model from the IMF: Still Very Small
CEPR Reports and Issue Briefs from Center for Economic and Policy Research (CEPR)
This paper takes a careful look at a recent International Monetary Fund (IMF) Working Paper that claims to find significant gains for liberalization of trade through the World Trade Organization. It is not clear that the reported gains are at all large. The IMF paper shows that multilateral liberalization increases consumption perhaps 0.014 percent. This would be about 43 cents per person per month in the United States. One significant result of the IMF paper is that potential gains of multilateral trade liberalization are very small even in a formal New Keynesian model incorporating economies with significant power in international markets.
Keywords: IMF; WTO; trade; trade liberalization (search for similar items in EconPapers)
JEL-codes: F F1 F13 F17 F14 F16 F10 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:epo:papers:2015-10
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