Trade and investment in Latin America and Asia : Potential perspectives from further integration

Antoine Bouet (1, 2) , Valdete Berisha-Krasniqui (2) , Carmen Estrades (2) , David Laborde (2)

1 Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales
2 IFPRI - International Food Policy Research Institute [Washington]

Recently, Asian and Latin American countries have been involved in a series of negotiations to liberalize trade and investment flows. This paper analyzes the potential impact of a Free Trade Agreement between countries of both regions, applying a world dynamic general equilibrium model (MIRAGE). The model includes a new way of modeling bilateral investment flows and bilateral investment agreements. Our results show that most countries will benefit from the agreement; however, Latin American countries' gains will be higher, especially when all Asian countries participate. Latin American countries will also gain from increased FDI inflows, mainly from developed Asian countries.

Mots clés: Trade liberalization; FTA; Asia; Latin America; CGE modeling

Domaines: Economies et finances

Antoine Bouet, Valdete Berisha-Krasniqui, Carmen Estrades, David Laborde. Trade and investment in Latin America and Asia : Potential perspectives from further integration. 2011. ⟨hal-00637597⟩