Shifting Armington trade preferences: A re-examination of the Mercosur–EU negotiations

A highway across the Atlantic? Trade and welfare effects of the EU-Mercosur agreement

“…The study that is perhaps closest to ours is Philippidis et al (2014) who also make use of gravity estimations. Differently from us, however, the main impact of the EU-Mercosur trade treaty on trade flows is derived through a more traditional approach that consists in directly embedding tariff changes into the general equilibrium model.…”

“…All other studies, having been performed before an actual agreement was reached, could only simulate the effect of a "potential" agreement. Some, as explained above, assumed the treaty would imply the complete elimination of all tariffs on goods trade (Diao et al, 2003;Boyer and Schuschny, 2010;Philippidis et al 2014) and on service trade (Kirkpatrick and George, 2009).…”

A highway Across the Atlantic? Trade and Welfare Effects of the EU-Mercosur Agreement

“…All other studies, having been performed before an actual agreement was reached, could only simulate the effect of a "potential" agreement. Some, as explained above, assumed the treaty would imply the complete elimination of all tariffs on goods trade (Diao et al, 2003;Boyer and Schuschny, 2010;Philippidis et al 2014) and on service trade (Kirkpatrick and George, 2009). Others consider more complex scenarios than a full liberalization.…”

Modelling trade and other economic interactions between countries in baseline projections

“…This shock feeds together with reductions of tariffs and subsidies into simulation experiments. See also Philippidis et al (2014) as well as Burfisher (2011). 33 More recently, the literature on structural gravity models has explored theoretically consistent ways to estimate trade effects of policy changes in counterfactual scenarios.…”