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GTAP Resource #5559

"Brexit and Everything But Arms (EBA) Countries: Losing Preferences"
by Olekseyuk, Zoryana and Israel Osorio Rodarte

This paper investigates the impact of Brexit on the Least Developed Countries (LDCs) that currently enjoy a preferential treatment under the Everything But Arms (EBA) treaty. We use an innovative multi-region and multi-sector general-equilibrium simulation model incorporating a competitive selection of heterogeneous manufacturing firms and FDI in services. In addition, we conduct a set of microsimulations using the Global Income Distribution Dynamics (GIDD) model and, therefore, provide detailed results for poverty and shared prosperity. Our results indicate that an increase in UK’s tariffs and NTBs against the EBA countries along with Brexit would lead to a negative impact in all included LDCs with the highest welfare change of -1.39% in Cambodia. The micro-simulations illustrate a considerable increase in the share of population under the poverty line.

Resource Details (Export Citation) GTAP Keywords
Category: 2018 Conference Paper
Status: Published
By/In: Presented at the 21st Annual Conference on Global Economic Analysis, Cartagena, Colombia
Date: 2018
Created: Olekseyuk, Z. (4/15/2018)
Updated: Olekseyuk, Z. (6/6/2018)
Visits: 2,518
- Economic analysis of poverty
- Foreign direct investment
- Non-Tariff barriers
- Non-Tariff measures in services
- Preferential trading arrangements
- Trade in services
- The GTAP Data Base and extensions
- European Union

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