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Object Description
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| Title | Is SAFTA trade creating or trade diverting? |
| Subtitle | A computable general equilibrium assessment with a focus on Sri Lanka |
| Author |
Bouët, Antoine Mevel, Simon Thomas, Marcelle |
| ORCID | http://orcid.org/0000-0002-8020-8877 Bouët, Antoine; http://orcid.org/0000-0001-6832-0340 Thomas, Marcelle |
| Year | 2010 |
| Abstract | The Agreement on South Asian Free Trade Area (SAFTA) entered its second phase of implementation in 2008. The creation of a free trade area is expected to affect its participants—Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka—very differently given their diversity in terms of size, income, and structure of trade and protection. Using the 2004 MAcMapHS6-v2 database on measures of applied protection at the HS6 level and MIRAGE, a computable general equilibrium global model, this study examines the effects of SAFTA on trade and net income in the region. The magnitude of the effects will depend on initial levels of protection in the region and whether the agreement is trade diverting or trade creating. An important component of the SAFTA agreement is the exemption of products (sensitive list) from the trade liberalization process. Because such exclusion can restrict significantly the benefits from the regional trade agreement, we simulate the effects of SAFTA with and without sensitive products. Our findings show that among South Asian countries, Sri Lanka gains the most from the agreement because it initially has relatively low tariffs and faces high tariffs in the region. Exempting sensitive products from the agreement limits gains from trade for the lower-middle-income members of SAFTA but may be welfare enhancing for the least developed economies. |
| Series Name | IFPRI Discussion Paper |
| Series Number | 950 |
| Publisher | International Food Policy Research Institute (IFPRI) |
| Place of publication | Washington, D.C. |
| Language | English |
| Record Type | Discussion paper |
| Peer Reviewed - PR or Non-PR | Non-PR |
| Subject - country location |
SRI LANKA SOUTH ASIA ASIA |
| Subject - keywords |
South Asian Free Trade Area (SAFTA) trade liberalization Computable General Equilibrium (CGE) model welfare trade applied protection income FTA Markets Globalization |
| Subject - author supplied keywords | Computable General Equilibrium (CGE) model |
| JEL Descriptors | C68 Computable General Equilibrium Models |
| IFPRI Descriptors |
IFPRI1 GRP2 |
| IFPRI Division | MTID |
| Access Rights | Open Access |
| Display Notes | Effective January 2007, the Discussion Paper series within each division and the Director General�s Office of IFPRI were merged into one IFPRI�wide Discussion Paper series. The new series begins with number 00689, reflecting the prior publication of 688 discussion papers within the dispersed series. The earlier series are available on IFPRI�s website at http://www.ifpri.org/category/publication-type/discussion-papers. |
| LOC call number | IFPRIDP00950 |
| Physical description | 60 pages |
| Times cited-- Google Scholar | http://scholar.google.com/scholar?cites=12864593515927522498&as_sdt=20005&sciodt=0,9&hl=en |
| RePEc Downloads | https://ideas.repec.org/p/fpr/ifprid/950.html |
| Requests | mailto:ifpri-library@cgiar.org |
| CONTENTdm file name | 518.cpd |
| Date cataloged | 2019-07-09 |
| Date modified | 2019-07-09 |
| OCLC number | 861347705 |
| CONTENTdm number | 517 |
Description
| Title | ifpridp00950 25 |
| Access Rights | Open Access |
| Requests | mailto:ifpri-library@cgiar.org |
| CONTENTdm file name | 474.pdfpage |
| Date cataloged | 2015-03-06 |
| Date modified | 2015-03-06 |
| CONTENTdm number | 473 |
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