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GTAP Resource #5210

"The cost of protectionism: Are consumers willing to pay it?"
by Kutlina-Dimitrova, Zornitsa and Csilla Lakatos


Abstract
The aim of this paper is to provide a quantification of the cost of protectionism in multilateral context. This is one of the few attempts in the general equilibrium modelling literature to explicitly measure the cost of not having engaged in international trade liberalisation and the cost of increasing trade barriers in the current trade policy environment. For this purpose the authors use the dynamic GTAP model GDyn and the most recent GTAP database. In terms of modelling design the cost of protectionism are simulated through two scenarios: 1) an increase in tariffs on sectoral merchandise trade to their levels before the Uruguay round was negotiated and 2) an increase in tariffs to their bound levels in the WTO. In that way, the results of the modelling can be interpreted as an estimate of the cost of not having engaged in multilateral trade liberalisation and the cost stemming from using all discretionary power available to countries in terms of their negotiated trade schedules.



Resource Details (Export Citation) GTAP Keywords
Category: 2017 Conference Paper
Status: Published
By/In: Presented at the 20th Annual Conference on Global Economic Analysis, West Lafayette, IN, USA
Date: 2017
Version:
Created: Kutlina-Dimitrova, Z. (4/5/2017)
Updated: Kutlina-Dimitrova, Z. (4/5/2017)
Visits: 1,000
- Dynamic modeling
- Multilateral trade negotiations


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