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Book cover: Frontiers of Economics and Globalization

Frontiers of Economics and Globalization

ISSN: 1574-8715
Series editor(s): Professor Hamid Beladi, Professor E. Kwan Choi

Subject Area: Economics

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Chapter 13 Ex Ante

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Title:Chapter 13 Ex Ante
Author(s):Joseph F. Francois, Will Martin
Volume:7 Editor(s): John Gilbert ISBN: 978-0-85724-141-2 eISBN: 978-0-85724-142-9
Citation:Joseph F. Francois, Will Martin (2010), Chapter 13 Ex Ante, in John Gilbert (ed.) New Developments in Computable General Equilibrium Analysis for Trade Policy (Frontiers of Economics and Globalization, Volume 7), Emerald Group Publishing Limited, pp.379-434
DOI:10.1108/S1574-8715(2010)0000007016 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Article type:Chapter Item
Abstract:Most current modeling approaches identify very small gains from trade reform. In this chapter, we examine recent developments in the literature to assess whether standard modeling approaches are mis-specifying, understating, or overstating the gains from trade reform. Key areas where the impacts of trade barrier reduction appear to be understated include the measurement of barriers; the aggregation of these barriers; process productivity gains, particularly those resulting from reallocation of resources between firms; product quality improvements and expansion of product variety; factor supply; and investment of gains from trade.

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