Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
GTAP FAQs
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #1453

"ECONOMIC IMPACTS OF A POSSIBLE CANADA-U.S. CUSTOMS UNION: SIMULATION RESULTS FROM A DYNAMIC CGE MODEL"
by Ghosh, Madanmohan and Someshwar Rao


Abstract
In this paper we analyze the implication of a possible Canada-U.S. customs union on trade flows, real output and investment both at the aggregate and industry levels in Canada, using a multi-sector, multi-region dynamic computable general equilibrium model. The model is calibrated to the GTAP Database (version 5, 1997). Our scenario for a possible Customs Union with the U.S. assumes the harmonization of Canadian and U.S. tariffs against the non-NAFTA countries (common external tariffs) as well as the elimination of the Rules- of- Origin provisions of the NAFTA. Our simulation results suggest that the overall economic gain to Canada from a Customs Union between Canada and the U.S. could be as much as 1% of GDP. Canada’s trade could expand by almost 20 %. American trade will also increases significantly, but at a slower pace than that of Canada. Much of the increase in trade flows and GDP are the result of the elimination of the Rules-of-Origin provisions. All Canadian industries, except food and beverages, gain from a Canada-U.S. Customs Union. The big beneficiaries are transportation equipment, electronics, and machinery and equipment. Services and resource-based industries gain the least.

Key words: Customs union, Dynamic general equilibrium, Rules-of-origin.
JEL classification No: C61, C68


Resource Details (Export Citation) GTAP Keywords
Category: 2004 Conference Paper
Status: Published
By/In: Presented at the 7th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2004
Version: March
Created: Ghosh, M. (4/28/2004)
Updated: Ahmed, S. (9/13/2004)
Visits: 3,671
No keywords have been specified.


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  File format GTAP Resource 1453   (376.1 KB)   Replicated: 0 time(s)
  File format GTAP Resource 1453   (338.8 KB)   Replicated: 0 time(s)
  File format GTAP Resource 1453   (144.7 KB)   Replicated: 0 time(s)
  File format GTAP Resource 1453   (49.4 KB)   Replicated: 0 time(s)
  File format GTAP Resource 1453   (119.0 KB)   Replicated: 0 time(s)
  File format Presentation   (174.8 KB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.



Last Modified: 9/15/2023 2:05:45 PM