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The economic impact of the Trans‐Pacific Partnership: What have we learned from CGE simulation?
Author(s) -
Gilbert John,
Furusawa Taiji,
Scollay Robert
Publication year - 2018
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12573
Subject(s) - computable general equilibrium , negotiation , general partnership , economics , economic impact analysis , asia pacific , key (lock) , international trade , regional science , macroeconomics , computer science , international economics , microeconomics , political science , finance , geography , computer security , law
The Trans‐Pacific Partnership ( TPP ) trade agreement, if were it to be successfully implemented, would be one of the largest regional agreements ever seen. It is the only exemplar to date of a “mega‐regional” FTA for which negotiations have been successfully concluded, and a landmark in evolving approaches to Asia–Pacific integration. As such, quantitative assessments of its potential effects are of considerable interest. One of the most widely used techniques for evaluating the economic impact of regional trading agreements is numerical simulation with computable general equilibrium, or CGE , models. There have now been a large number of papers written that use CGE methods to analyse the potential economic impact of the TPP agreement under varying theoretical and policy assumptions. In this paper we provide a synthesis of the key results that have emerged from the literature, and introduce some new simulation results of our own to anchor the discussion.