Jensen, JesperTarr, David G.2012-03-192012-03-192011-05-01https://hdl.handle.net/10986/3425This paper develops an innovative 21 sector computable general equilibrium model of Armenia to assess the impact on Armenia of a Deep and Comprehensive Free Trade Agreement with the European Union, as well as further regional or multilateral trade policy commitments. The analysis finds that such an agreement with the European Union will likely result in substantial gains to Armenia, but shows that the gains derive from the deep aspects of the agreement. In order of importance, the sources of the gains are: (i) trade facilitation and reduction in border costs; (ii) services liberalization; and (iii) standards harmonization. A shallow agreement with the European Union that focuses only on preferential tariff liberalization in goods will likely lead to small losses to Armenia primarily due to a loss of productivity from lost varieties of technologies from the rest of the world region in manufactured products. Additional gains can be expected in the long run from an improvement in the investment climate. The authors estimate only small gains from a services agreement with countries of the Commonwealth of Independent States, but significant gains from expanding services liberalization multilaterally.CC BY 3.0 IGOADVANCED COUNTRIESAGRICULTUREAIRAIR TRANSPORTBANKING SERVICESBASE YEARBENCHMARKBENCHMARK EQUILIBRIUMCAPITAL GOODCAPITAL STOCKCENTRAL ELASTICITYCOMMODITIESCOMMODITYCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSTANT ELASTICITY OF TRANSFORMATIONCONSTANT RETURNS TO SCALECOST REDUCTIONCOST STRUCTURECOST STRUCTURESCOUNTRY OF ORIGINCUSTOMS UNIONDEMAND CURVEDEMAND CURVESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDEVELOPMENT INTENSITYDEVELOPMENT POLICYDOMESTIC MARKETDOMESTIC PRODUCTIONECONOMETRIC ESTIMATESECONOMIC FEASIBILITYECONOMIC GEOGRAPHYECONOMIC IMPLICATIONSECONOMIC INTEGRATIONECONOMIC PERFORMANCEECONOMIC REFORMECONOMIC RESEARCHECONOMIC THEORYECONOMICS LITERATUREELASTICITIESELASTICITYELASTICITY OF DEMANDELASTICITY OF SUBSTITUTIONELASTICITY OF SUPPLYELASTICITY VALUESEQUILIBRIUMEXPORT MARKETSEXPORTERSEXPORTSEXTERNALITIESEXTERNALITYFACTORS OF PRODUCTIONFEDERAL RESERVEFEDERAL RESERVE BANKFINANCIAL SUPPORTFIRM PERFORMANCEFIXED RATEFOOD INDUSTRYFOREIGN DIRECT INVESTMENTFOREIGN FIRMSFOREIGN GOODSFOREIGN INVESTMENTFOREIGN OWNERSHIPFREE ACCESSFREE TRADEFREE TRADE AGREEMENTFREE TRADE AGREEMENTSGDPGENERAL EQUILIBRIUM ANALYSISGENERAL EQUILIBRIUM MODELGLOBAL INTEGRATIONGLOBALIZATIONGROSS DOMESTIC PRODUCTHARMONIZATIONIMPERFECT COMPETITIONIMPORT DUTIESINCOMEINCOMESINCREASING RETURNSINCREASING RETURNS TO SCALEINSPECTIONINSURANCEINTERMEDIATE GOODSINTERMEDIATE INPUTSINTERNATIONAL AGREEMENTINTERNATIONAL COMPETITIVENESSINTERNATIONAL NEGOTIATIONSINTERNATIONAL TRADEINVESTMENT BARRIERSINVESTMENT CLIMATEKNOWLEDGE SPILLOVERSLAND TRANSPORTLEGAL FRAMEWORKLESS DEVELOPED COUNTRIESLOCALIZATIONLOSS OF TARIFF REVENUEMANUFACTURING INDUSTRYMANUFACTURING PRODUCTIVITYMARGINAL COSTMARGINAL COSTSMARGINAL PRODUCTMARGINAL REVENUEMARKET ACCESSMARKET SHAREMARKET SHARESMONOPOLISTIC COMPETITIONMULTILATERAL TRADEMULTINATIONAL FIRMSOPEN ECONOMIESOPEN ECONOMYOPENNESSOPTIMAL TARIFFSOPTIMIZATIONOUTPUTPREFERENTIAL AGREEMENTPREFERENTIAL AGREEMENTSPREFERENTIAL REDUCTIONPREFERENTIAL TARIFFPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPREFERENTIAL TRADE AREASPRICE INDEXPRIMARY FACTORSPRIMARY FACTORS OF PRODUCTIONPRODUCT DIFFERENTIATIONPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTIVITYPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESRAILROADRAILWAYRAILWAYSRATE OF RETURNRATE OF RETURN ON CAPITALREAL ESTATEREDUCTION OF BARRIERSREGIONAL INTEGRATIONREGIONAL TRADEREGIONAL TRADE AGREEMENTSREGIONALISMREGULATORY BARRIERSREGULATORY ENVIRONMENTREGULATORY REGIMESRETURNS TO SCALEROAD TRANSPORTRULES OF ORIGINSAFETYSINGLE MARKETSMALL COUNTRIESSUPPLY CURVESUPPLY CURVESTARIFF BARRIERSTARIFF DATATARIFF EQUIVALENCETARIFF PREFERENCESTARIFF PROTECTIONTARIFF RATETARIFF RATESTARIFF REDUCTIONTARIFF REVENUETAXTECHNOLOGY TRANSFERTELECOMMUNICATIONSTERMS OF TRADETERMS OF TRADE EFFECTSTHIRD WORLDTOTAL FACTOR PRODUCTIVITYTRADE BARRIERSTRADE DATATRADE DIVERSIONTRADE DIVERSION COSTSTRADE FACILITATIONTRADE FLOW DATATRADE LIBERALIZATIONTRADE PARTNERSTRADE PATTERNSTRADE POLICYTRADE REFORMTRANSITION ECONOMIESTRANSMISSION OF KNOWLEDGETRANSMISSION OF TECHNOLOGYTRANSPORTTRANSPORT ACTIVITIESTRANSPORT SERVICESTRANSPORTATIONTRANSPORTATION COSTSTRANSPORTATION SERVICESTRUCKSTRUEUNIFORM TARIFFSUNILATERAL LIBERALIZATIONUNILATERAL REFORMURUGUAY ROUNDVARIABLE COSTSVEHICLEWELFARE GAINSWELFARE IMPACTSWELFARE LOSSWORLD ECONOMYWORLD INVESTMENT REPORTWORLD TRADEWORLD TRADE ORGANIZATIONWTOZERO PROFITSZERO TARIFFSWorld Bankhttps://doi.org/10.1596/1813-9450-5662