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Trade and investment in Latin America and Asia: Perspectives from further integration

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  • Bouët, Antoine
  • Berisha-Krasniqi, Valdete
  • Estrades, Carmen
  • Laborde, David

Abstract

Recently, Asian and Latin American countries have engaged in a series of negotiations to liberalize trade and investment flows. This paper analyzes the potential impact of a free trade agreement (FTA) between countries of both regions, applying a world dynamic general equilibrium model (MIRAGE). An important feature of the model is that it includes a new way of modeling bilateral investment flows and bilateral investment agreements. This is especially important given that investment plays a major role in the economic relations of the two regions. Our results show that most countries will benefit from the agreement; nevertheless, the gains of Latin American countries will be higher, especially when all Asian countries participate. In addition, Latin America benefits from increased FDI inflows, mainly from developed Asian countries.

Suggested Citation

  • Bouët, Antoine & Berisha-Krasniqi, Valdete & Estrades, Carmen & Laborde, David, 2012. "Trade and investment in Latin America and Asia: Perspectives from further integration," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 193-210.
    • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:2:p:193-210
    DOI: 10.1016/j.jpolmod.2011.09.004
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    References listed on IDEAS

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    2. Antoine Bouët & Valdete Berisha-Krasniqui & Carmen Estrades & David Laborde, 2011. "Trade and investment in Latin America and Asia :Potential perspectives from further integration," Larefi Working Papers 201101, Larefi, Université Bordeaux 4.
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    Cited by:

    1. Estrades, Carmen, 2018. "Going backwards: Assessing the impact of NAFTA dissolution on Mexico," Conference papers 332956, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    3. Charles Sawyer W. & B. Wooster Rossitza & R. Blanco Luisa, 2015. "Does Experience Matter for Patterns of Expansion by US Companies in Latin America and the Caribbean?," Global Economy Journal, De Gruyter, vol. 15(1), pages 1-24, March.
    4. Zhou, Jing, 2023. "A double-edged sword: Chinese direct investment in Latin America," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 234-249.
    5. Antoine Bouët & Valdete Berisha-Krasniqui & Carmen Estrades & David Laborde, 2011. "Trade and investment in Latin America and Asia :Potential perspectives from further integration," Larefi Working Papers 201101, Larefi, Université Bordeaux 4.
    6. Mario Holzner, 2013. "Impact of Croatian EU Accession on Regional Trade Patterns," wiiw Policy Notes 10, The Vienna Institute for International Economic Studies, wiiw.
    7. Reddy, Kotapati Srinivasa & Nangia, Vinay Kumar & Agrawal, Rajat, 2013. "Indian economic-policy reforms, bank mergers, and lawful proposals: The ex-ante and ex-post ‘lookup’," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 601-622.
    8. Stankov, Petar & Vasilev, Aleksandar, 2019. "Business reform outcomes: Why so different?," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1109-1127.
    9. Antoine Bouet & Valdete Berisha-Krasniqui & Valdete Berisha-Krasniqui & Carmen Estrades & David Laborde, 2011. "Trade and investment in Latin America and Asia : Potential perspectives from further integration," Larefi Working Papers 1101, Larefi, Université Bordeaux 4.
    10. Latorre, María C. & Hosoe, Nobuhiro, 2016. "The role of Japanese FDI in China," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 226-241.

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    More about this item

    Keywords

    Trade liberalization; FTA; Asia; Latin America; CGE modeling;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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