Rahul Arora

Assessment of the Proposed India-China Free Trade Agreement: A General Equilibrium Approach

The present study is an attempt to evaluate the impact of the proposed India-China free trade agreement (FTA) in goods trade on both countries under a static general equilibrium framework.,The study has utilized the Global Trade Analysis Project (GTAP) model of world trade with the presence of skilled and unskilled unemployment in the world. For analysis purposes, 57 GTAP sectors, representing the whole regional economy, have been aggregated into 43 sectors and 140 GTAP regions, representing the whole world, have been aggregated into 19 regions. The study has also used the updated tariff rates provided by the World Trade Organization for better results. ,The preliminary analysis using trade indicators depicted that by utilizing their own comparative advantage, both of the countries can maximize their gains by exporting more to the world. The simulation results from the GTAP analysis revealed that a tariff reduction in all goods trade would be more beneficial for both the countries than the tariff reduction in each others specialized products. All other regions lose in terms of shifting the Indian imports towards China in a post-simulation environment. Regions with a significant loss are: the European Union (28 members), Southeast Asia, the Unites States, Japan, Korea, West Asia, and the European Free Trade Association (EFTA).,The disaggregated sector-wise analysis has been performed using the latest available GTAP database, version 9.

Goods Trade Liberalization Under Canada-India FTA and Its Impact: Partial and General Equilibrium Analysis

This chapter uses the partial (SMART) and general equilibrium (GTAP) tools to assess and simulate the impact of complete trade liberalization of ‘All’ and ‘Specialized’ products’ between India and Canada under the proposed Canada-India free trade agreement (FTA).The simulation results obtained from both of the analyses (partial and general equilibrium analyses) indicate that India would invariably gain more (than Canada) in terms of welfare change and consumer surplus when ‘All’ or ‘Specialized’ products of Canada enters India in comparison with the scenario when Indian ‘Specialized’ and ‘All’ products enters Canada. This study recommends the reworking of benefits and costs associated with Canada-India FTA in the presence of WTO plus and extra provisions.

Calculation of Ad Valorem Equivalents of Non-Tariff Barriers: A Case Study of 16 RCEP Countries

This chapter provides the calculation of ad valorem equivalents (AVEs) of nontariff barriers, particularly those barriers that increase both the time to import and the time to export goods between two trading partners. The calculation considers the example of 16 member countries of the proposed Regional Comprehensive Economic Partnership (RCEP) agreement. This chapter evaluates the impact of trade facilitation in RCEP countries on their bilateral trade flows and other macroeconomic variables. Using an econometric approach, sectorwide AVEs of the time to import and the time to export have been calculated through the estimation of an augmented version of the gravity model.

Theoretical Exposition of Some Ex Ante Approaches to Assess the Proposed Trade Policy

This chapter explains the partial and general equilibrium approaches of evaluating proposed changes in trade policies. It discusses some of the empirical methods available in trade policy research that have been presented in earlier chapters. Advance references and online links are given for detailed reading. This chapter is very important for those readers who have initiated and planned their research in the field of empirical analysis of international trade policy issues. It will guide them in choosing appropriate methodology and acquiring data for their research work.

Developments in International Trade Theory and Gravity Modelling

This chapter discusses advances in international trade theory and gravity modeling with an explanation of the reasons behind gains from trade. The changing pattern of trade over time has also changed the explanation of the emergence of gains from trade, which provides room for new trade theories. Initial theories of trade, known as traditional trade theories, explain the pattern of trade in terms of comparative advantage. But with the passage of time, the emergence of trade in intermediates and services has provided new reasons for trade and hence has led to the advent of new trade theories. This chapter will explain the different reasons behind international trade.

Future Avenues in Trade Policy Research

This chapter concludes with a discussion of some new areas of research that can be pursued with the help of advanced applications of empirical tools. Many more issues still require further attention. The dynamic nature of trade policy provides many new areas of research that can be fruitful for any sincere researcher working in this field.