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Trade, Economic and Welfare Impacts of the CARICOM-Canada Free Trade Agreement

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  • Khadan, Jeetendra
  • Hosein, Roger

Abstract

This paper estimates the trade, revenue, and welfare effects of the proposedCaribbean Community (CARICOM)-Canada free trade agreement (FTA) on CARICOM countries using a partial equilibrium model. The welfare analysis also takes into account the Economic Partnership Agreement, which was signed in 2008 by the CARIFORUM (CARICOM and the Dominican Republic) countries and the European Union. The revealed comparative advantage index, trade complementarity index, and transition probability matrices are used to examine the dynamics of comparative advantage for CARICOM countries' exports to Canada. The results obtained from the partial equilibrium model indicate adverse revenue and welfare effects for CARICOM member states. The results from various trade indices used do not provide evidence to suggest that an FTA between CARICOM countries and Canada can improve trade outcomes.

Suggested Citation

  • Khadan, Jeetendra & Hosein, Roger, 2016. "Trade, Economic and Welfare Impacts of the CARICOM-Canada Free Trade Agreement," IDB Publications (Working Papers) 7887, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:7887
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    Cited by:

    1. Xiaosong Zheng & Lijun Jia & Jiawen Bao & Jiao Chen, 2018. "A Study of Trade Complementarity between China and the Baltic States and its Development Strategies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(49), pages 788-788, August.

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    More about this item

    Keywords

    trade agreements; exports; tariff revenues;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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