Economic Transformation and Sustainable Development through Multilateral Free Trade Agreements

For sustainable economic development, a continuous and successful transformation is critical, supporting requires better understanding of the close interaction between technology skill at micro- macro-levels. The technology-skill links should especially be important in today’s globalized world. This paper develops large-scale global Computable General Equilibrium (CGE) model by incorporating recent theoretical advances international trade: Heterogeneous workers endogenously sort into different technologies based on their comparative advantage, aggregate productivity determined skill-technology assignment equilibrium. We then calibrate our to real-world data set, investigate how multilateral free trade agreements affect individual member states, as well outside countries regions case Regional Comprehensive Economic Partnership (RCEP). Overall, results show considerable real gains effects, due technology-upgrading mechanisms.