General Equilibrium Dynamic Models and the Doha Round Impact on Underdeveloped Economies

by Bostan, Ionel and Grosu, Veronica
Published in Romanian Journal of Economic Forecasting
, 2011, volume 14 issue 1, 159-174

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The authors have focused on the provision of a general outlook on global multiregional models that enable the study of the effects of commercial policies, and have particularly analysed the models that can be applied to underdeveloped economies. Starting from a simple model, the hypotheses introduced into general equilibrium models are analysed, focusing on the study of commercial policies.
Following a synthetic description of the main Walrasian global multiregional models, selected according to the possibility of applying these instruments to the analysis of commercial policies in underdeveloped countries, attention is particularly given to the main limitations entailed by these models, thus emphasizing their disagreement with the characteristics of the underdeveloped economies. Moreover, the study underlines the hypotheses according to which these models would not be suitable for the economies of those states. The authors also insist on the impact of the possible scenarios derived from the Doha Round, which have caused significant assessment differences.

Keywords: general equilibrium models, trade policies, trade predictions, Doha Round scenario
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