In order to answer the pertinent question why developing countries are showing penchant for foreign capital over the last two decades in spite of its detrimental effects as revealed from the conventional two-sector mobile capital version of Harris–Todaro (HT) model in the presence of...

This study examines the dynamic effects of a Free Trade Area of the Americas (FTAA) on the countries within the Western Hemisphere. The analysis uses an intertemporal, global, multi-sector general equilibrium model which takes into account changes in saving-investment, capital accumulation, and...

This paper corrects a shortcoming in the literature on computable general equilibrium models and imperfect competition with free entry and increasing returns to scale. The trade integration simulations applied to the US suggest that the shortcoming is quantitatively insignificant if key...

This paper describes the dynamic spatial general equilibrium model, Regional Holistic MOdeL(RHOMOLO), developed by the European Commission, where the labour market equilibrium is determined by firms’ labour demand, unemployment and interregional labour migration. We carry out simulations on...

This paper proposes a decomposition of the likely effects of a “deep” regional integration arrangement for a small country. It is based on a steady-state general equilibrium model which allows to capture the long-term effects of a variety of factors, including the reduction of non-tariff...

The Barcelona process is an ongoing process and its first economic results are still insignificant. This study had two objectives. The first is to provide a global assessment of its impacts on the three North African countries that have already became members of this process, namely Tunisia,...

Despite economic theory and empirical literature that have shown that wide availability of business services contributes significantly to productivity gains and growth, economic modelers have been slow to meaningfully incorporate services into their models. This paper employs a 52-sector, small,...

This paper applies a global general equilibrium model to quantify the impact on the global and regional economies of liberalising trade in financial services. The paper uses recent estimates of trade barriers for financial services in both developed and developing countries. The simulation...

The economic welfare implications of some countries using new genetically modified varieties in crop production will depend on which countries choose to adopt them and on whether others (notably Western Europe) ban their importation. They also depend on existing (non-GMO-specific) agricultural...

The heterogeneity of southern African countries offers the region a unique opportunity to exploit agricultural potential and trade opportunities through regional integration. We analyze the implications of such opportunities using a regional general equilibrium model. We find that growth in...