This paper simulates the costs of the US-Japan auto VER. Under a standard constant returns to scale (CRTS) formulation, the costs are estimated at about $10 billion. It then sequentially introduces important features of the auto VER: endogenous rent premium determination, wage distortions in...

The author argues that trade diversion based on tariff preferences can be welfare-reducing because there is a tradeoff between improved resource allocation and a loss in terms of trade - where the latter loss equals the lost tariff revenue of the importing country. With trade diversion based on...

Morocco is interested in developing a reciprocal free trade agreement with the European Community (EC), although it already enjoys free access to EC markets in industrial products and is not obligated to give EC exporters reciprocal access. But Moroccan agricultural exports are impeded by...

The authors quantify the impact on Cameroon of three aspects of its new regional trade agreement with the Central African Economic and Monetary Community (the CEMAC agreement): i) improved access to markets in CEMAC; ii) preferential tariff reduction; and iii) reduction of its external tariff...

Economists have debated whether the Soviet Union subsidized trade with its Eastern European partners in the Council of Mutual Economic Assistance (CMEA). Effective January 1, 1991, former CMEA members implemented their"switchover"decision to convert to world market prices denominated in...

This paper develops a seven-region comparative static computable general equilibrium model of Russia to assess the impact of accession tothe World Trade Organization on these seven regions (the federal okrugs) of Russia. In order to assess poverty and distributional impacts, the model includes...

A web of trade and payments arrangements binds countries of Eastern and Central Europe under the Council of Mutual Economic Assistance (CMEA) agreements. However, it is incompatible with these countries recent commitments to move toward liberalized trade and currency convertibility. The...

Should the United States increase taxes and tariffs in the energy sector to reduce its federal deficit? This paper uses a twelve sector general equilibrium model to estimate the fiscal effects, and the effects on welfare and employment, of : (i) a 25 percent import tax on imported crude...

A growing body of evidence suggests that the close availability of diverse business services is important for economic growth. Producer services such as managerial and engineering consulting can provide specialized knowledge to help domestic firms develop at lower unit cost. But these...

This paper summarizes the principal reform commitments that Russia has undertaken as part of its World Trade Organization (WTO) accession negotiations, providing detailed assessments in banking, insurance, and agriculture. The paper assesses the gains to the Russian economy from these...