Open AccessEstimation of the commercial effect of a Colombia-Israel FTA: Trade overview and partial equilibrium analysis, 2004-2014
Author(s) -
Stella del Pilar Venegas Calle,
Nicolás De la Peña Cárdenas
Publication year - 2019
Publication title -
cuadernos de administración
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.109
H-Index - 9
ISSN - 1900-7205
DOI - 10.11144/javeriana.cao32-59.etcec
Subject(s) - tariff , complementarity (molecular biology) , partial equilibrium , estimation , economics , general equilibrium theory , econometrics , international trade , international economics , microeconomics , genetics , management , biology
The study presents the quantitative effects of a total tariff tax exemption between Colombia and Israel. Tariff reduction simulations are carried out using a partial equilibrium model based on the SMART methodology. Before the model, some indicators are presented to show an overview of the degree of complementarity, similarity and comparative advantages revealed. The results show that the commercial effect is very low for both countries and that there are minimum potential risks. However, several opportunities of new exports for specific sectors are identified.