Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/173811 
Year of Publication: 
2016
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-678
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper estimates the trade, revenue, and welfare effects of the proposed Caribbean 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.
Subjects: 
CARICOM-Canada FTA
partial equilibrium model
welfare effects
comparative advantage
JEL: 
F13
F14
F17
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
767.36 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.