Empirical analysis of the economic impact from ALCA and Mercosul consolidation on Brazil

Authors

  • André Filipe Zago de Azevedo Universidade do Vale do Rio dos Sinos
  • Flávio Tosi Feijó Fundação Universidade Federal de Rio Grande

DOI:

https://doi.org/10.5380/re.v36i2.22999

Keywords:

General Equilibrium Models, Regional Integration, FTAA, Mercosul

Abstract

This paper analyses the impact of the FTAA creation and the deepeningof Mercosul on trade flows, GDP and welfare in Brazil and its Mercosur partnersbased on a computable general equilibrium model from the Global Trade AnalysisProject (GTAP). The first simulation examines the economic effects of the FTAAformation between 1995 (initial equilibrium) and 2016 (year of consolidation ofthe bloc) supposing the establishment of a Free Trade Area in 2016. The secondsimulation analyses the effects of the establishment of Mercosul’s common externaltariff (CET) in 2006. Brazil benefits from both scenarios with regards to welfare gains, with FTAA formation bringing benefits marginally higher than the deepeningof Mercosul.

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How to Cite

Azevedo, A. F. Z. de, & Feijó, F. T. (2010). Empirical analysis of the economic impact from ALCA and Mercosul consolidation on Brazil. Revista De Economia, 36(2). https://doi.org/10.5380/re.v36i2.22999

Issue

Vol. 36 No. 2 (2010)

Section

Artigos

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