2010
DOI: 10.1017/s1355770x10000227
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The Socioeconomic and environmental effects of free trade agreements: a dynamic CGE analysis for Chile

Abstract: This paper undertakes a quantitative analysis of the socioeconomic and environmental impacts of different trade agreements for Chile. A dynamic general equilibrium model is used to compare the consequences of unilateral liberalization and trade agreements with the European Union (EU) and the United States (USA). The results show that economic gains under the trade agreements are only significant if foreign investment increases or value added taxes are modified. Winners and losers depend on the agreement; howev… Show more

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Cited by 45 publications
(6 citation statements)
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References 13 publications
(16 reference statements)
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“…By establishing a single-country (Japan) dynamic computable general equilibrium model with endogenous technological change, Matsumoto [10] evaluated the economic and environmental effects of climate change mitigation in a country scale considering various time horizons in the analysis. O'Ryan et al [11] developed a dynamic CGE model for Chile and made a quantitative analysis of the socioeconomic and environmental impacts of different trade agreements. This study aimed to compare the consequences of unilateral liberalization and trade agreements from Chile with the performance from European Union (EU) and the United States (USA).…”
Section: Introductionmentioning
confidence: 99%
“…By establishing a single-country (Japan) dynamic computable general equilibrium model with endogenous technological change, Matsumoto [10] evaluated the economic and environmental effects of climate change mitigation in a country scale considering various time horizons in the analysis. O'Ryan et al [11] developed a dynamic CGE model for Chile and made a quantitative analysis of the socioeconomic and environmental impacts of different trade agreements. This study aimed to compare the consequences of unilateral liberalization and trade agreements from Chile with the performance from European Union (EU) and the United States (USA).…”
Section: Introductionmentioning
confidence: 99%
“…That would be the case if the relatively high domestic saving rate that is necessarily associated to an external demand-reliant pattern fosters growth, in particular, by sustaining a relatively more competitive real exchange rate. While this section does not establish the actual domestic savings-real exchange rate-growth causal links, it shows comparative data for LAC-SAM (South America and Mexico) and the four Southeast Asian 34 See Valdes and Foster (2003), Regunaga (2010), andO'Ryan et al (2011). 35 See Mandel (2009).…”
Section: (C) External Versus Internal Demand-based Globalization Patternsmentioning
confidence: 98%
“…Much of this literature has been cast in terms of the scale and composition effects of trade liberalization, the greater levels of both depletion and emissions associated with higher levels of output being the scale effect, and the reallocation of resources towards activities in which a country has comparative advantage being the composition effect. The two effects have the capacity to move in the same or opposite directions depending on the nature of environmental policies in all countries (Abler et al , 1999; Barrett, 2000; Coxhead and Jayasuriya, 2004; O'Ryan et al , 2011).…”
Section: International Trade Aid and Global Environmental Public Goodsmentioning
confidence: 99%