The European Union and Japan have recently launched negotiations about a bilateral free trade agreement as means of …-industry trade between the two economies and the existence of heterogeneous firms. Furthermore, we model a search-and-matching labor … market allowing us to quantify employment effects of trade liberalization. We find that a comprehensive liberalization …

This paper provides a quantitative analysis of the new EU-Japan free trade agreement (FTA), the biggest bilateral deal … that both the EU and Japan have concluded so far. It employs a generalized variant of the Eaton-Kortum (2002) model … reductions in the costs of NTBs. This approach yields long-run welfare effects for Japan of about 18 bn. USD per year (0.31% of …