A general equilibrium, ex-post evaluation of the EU–Chile Free Trade Agreement

This paper evaluates the impact on the Chilean economy of the EU–Chile Free Trade Agreement, in force since 2003, based on a computable general equilibrium (CGE) model. The evaluation method, inspired by structural decomposition methods, consists of double calibration of the model, to account for interactions between the agreement’s impact and structural change in the Chilean economy. Trade flows are modeled at the detailed product level (six-digit level classification). The agreement is found to be slightly beneficial to Chile’s economy on the whole, benefiting mainly unskilled labor, with gains concentrated in few sectors (fruits, wine, fisheries and seafood processing).

Full-text available in .pdf

Advertisements

Comments do not require moderator approval but this will only last as long as everyone plays fair

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s