Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/20212
Title: Trade Facilitation - Measurement Difficulties in the Computable General Equilibrium Model: A Review
Contributor(s): Perera, Subashni (author); Siriwardana, Mahinda  (author); Mounter, Stuart  (author)orcid 
Publication Date: 2017
Open Access: Yes
DOI: 10.4236/tel.2017.72013Open Access Link
Handle Link: https://hdl.handle.net/1959.11/20212
Abstract: This paper reviews research on quantitative assessments of the economic impacts of Trade Facilitation (TF), based on Computable General Equilibrium (CGE) models, in the context of techniques adopted to estimate Trade Transaction Costs (TTCs). Insufficient TF poses a barrier to trade and is a major concern of the second generation trade policy agenda. Thus, recent CGE applications such as GTAP are generally associated with estimations of the benefits of eliminating TTCs by TF improvements, in that impacts of these trade barriers surpass those of tariff barriers, particularly in developing countries. However, accessing data relating to TTCs are limited, as no standard database has yet been developed. Thus, outcomes of existing CGE models vary in terms of the approach selected for TTC estimations. This paper outlines the methodological approaches adopted in recent research for estimating TTCs to incorporate into TF-related CGE models. Our literature survey revealed that two methods have been employed incorporating TTCs into CGE models and both approaches produced variances in estimating shortfalls. This review identifies the importance of developing a standard up to date trade costs database, including investment spending of TF implementations, which can be incorporated into GTAP aggregation to model TF variables, since cost benefit assessment is integral to determining the net global benefits of TF. Future TF related research should prioritise this process, since this is crucial for assessing the accurate economic impacts of eliminating TTC especially in developing countries.
Publication Type: Journal Article
Source of Publication: Theoretical Economics Letters, v.7, p. 154-163
Publisher: Scientific Research Publishing, Inc
Place of Publication: United States of America
ISSN: 2162-2086
2162-2078
Fields of Research (FoR) 2008: 140210 International Economics and International Finance
140219 Welfare Economics
Fields of Research (FoR) 2020: 380110 International economics
350207 International finance
380119 Welfare economics
Socio-Economic Objective (SEO) 2008: 910399 International Trade not elsewhere classified
Socio-Economic Objective (SEO) 2020: 150199 International trade policy not elsewhere classified
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
Appears in Collections:Journal Article

Files in This Item:
2 files
File Description SizeFormat 
Show full item record

Page view(s)

1,330
checked on May 5, 2024
Google Media

Google ScholarTM

Check

Altmetric


Items in Research UNE are protected by copyright, with all rights reserved, unless otherwise indicated.