The Uruguay Round: A Global General Equilibrium Assessment

In this paper we provide an economic assessment of the Uruguay Round agreements on tariffs, textiles and clothing, and agriculture, highlighting scale economies, imperfect competition, and dynamic linkages between trade, incomes, and investment. We present estimates of the welfare effects of the individual agreements and their overall impact on different regions in the world. We also provide a decomposition of estimates with respect to various assumptions about model structure. The inclusion of imperfect competition, scale economies, and capital accumulation effects proves to be important, not least for developing countries.