Who gains and who loses from unilateral and concerted trade liberalisation?

Abstract

This paper presents an empirical study of trade liberalisation. It focuses on the terms of trade deterioration which results from unilateral liberalisation, and on the extent to which the APEC strategy of concerted unilateral liberalisation can offset this source of welfare loss. Using the GTAP computable general equilibrium model, it is shown how the welfare effects of unilateral and concerted liberalisation depend on country size, protection structure and commodity composite of trade. This is done by examining trade liberalisation from the perspective of four countries/regions with distinctive characteristics: Australasia, Japan, ASEAN and North America. Show more