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Dorothee Flaig,Jared Greenville 세종대학교 경제통합연구소 2021 Journal of Economic Integration Vol.36 No.2
Global value chains (GVCs) a re an increasingly important driver of world t rade, and they are relevant in analyzing border policies and trade agreements. Combining methods of value added decomposition and a computable general equilibrium model, we show how tariff liberalization in APEC impacts on measures of integration. The trade agreement increases GVC integration worldwide irrespective of membership. The effects differ by type of integration, namely, forward or backward, depending on the source of intermediate inputs, the membership of countries up- and downstream the supply chain, and the border protection in the base. The analysis reveals some limitations of the presented integration measures in a dynamic context. First, value added incorporates income related to policy measures, and decreasing integration can reflect a lower tax burden and a more efficient network. Second, changes do not allow interpreting the size of effects of underlying variables, and similar changes can result from various underlying developments.
Trade Restrictions in Brazil : Who Pays the Price?
( Sonia Araujo ),( Dorothee Flaig ) 세종대학교 경제통합연구소 2017 Journal of Economic Integration Vol.32 No.2
This study finds that a unilateral reduction in Brazil`s relatively high barriers to trade would increase its integration into the world economy and expand production and jobs. Using a multi-region Computable General Equilibrium model that is particularly well-suited to gauge the impact of trade policy shocks in global value chains, this study documents the effects of reducing important barriers to trade in Brazil: reducing import tariffs and local content requirements, and eliminating indirect taxes levied on exports. The largest gains in production and exports would accrue to manufacturing sectors, contradicting the widespread perception in Brazil that lifting trade protection would reduce the share of manufacturing in production. Moreover, deeper integration into global value chains would raise economic efficiency, and the higher share of foreign intermediate goods used in production would lead to lower prices, boost international competitiveness, and also benefit Brazilian households.