Accounting for the New Gains from Trade Liberalization

The “Gains” from Preferential Trade Liberalization in the CGE Models: Where do they Come From?

Welfare Gains from Financial Liberalization.

Financial liberalization has been a controversial issue, as empirical evidence for growth enhancing effects is mixed. Here, we find sizable welfare gains from liberalization (cost to repression), though the gain in economic growth is ambiguous. We take the view that financial liberalization is a government policy that alters the path of financial deepening, while financial deepening is endogeno...

Are There Large New Gains from Trade?

These figures contrast with the World Bank’s widely publicised 2005 estimates of global gains from a ‘likely Doha scenario’ of less than US$100 billion, with just US$16 billion going to developing countries. So, have economists found another US$150-$350 billion in benefits for developing countries that the World Bank missed in 2005? Is development back in the Doha Round? The answer, of course, ...

The Shrinking Gains from Global Trade Liberalization in Computable General Equilibrium Models

The latest round of world trade negotiations, launched in Doha in 2001, has come to at least a temporary halt in the aftermath of the 2005 World Trade Organization (WTO) meeting in Hong Kong. The familiar arguments about the benefits of trade liberalization have been updated and forcefully reiterated: According to the World Bank and other leading analysts, massive computer modeling exercises sh...

Policy commitment and the welfare gains from capital market liberalization

This paper evaluates the quantitative impact of capital liberalization on the taxation structure and welfare of the liberalizing countries when governments conduct fiscal policy optimally but without commitment (time-consistent policies). The transition from a regime of capital autarky to a regime of free mobility leads to a decrease in the long-term tax rate on capital of 13 percent and an inc...