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Methods for Ex Ante Economic Evaluation of Free Trade Agreements

David Cheong

No 52, Working Papers on Regional Economic Integration from Asian Development Bank

Abstract: This paper provides practical techniques to policymakers for evaluating the potential economic effects of a Free Trade Agreement (FTA). To this end, the paper discusses how to apply three methods: (i) trade indicators, (ii) SMART (Software for Market Analysis and Restrictions on Trade) in WITS (World Integrated Trade Solutions), and (iii) the GTAP (Global Trade Analysis Project) model. The paper identifies the different aspects of an FTA that each method can evaluate, describes data sources and software requirements, specifies how to interpret the output from each method, and discusses the strengths and limitations of each method. To illustrate each method, there are examples applied to countries in the Association of Southeast Asian Nations (ASEAN), particularly Cambodia, Lao People‘s Democratic Republic, and Viet Nam.

Keywords: regionalization; evaluation methods; trade indicators; SMART model; CGE analysis; preferential trade agreements; Asia (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2010-06-01
New Economics Papers: this item is included in nep-cmp, nep-int and nep-sea
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