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Journal of Economic Integration 2007 December;22(4) :995-1018.
Impacts of Global Multilateral Trade Liberalization on Sustainability Indicators

J. Zhang A. Dobranskyte M. Berrittella 

University of Hawaii
Institute for Environment and Sustainability
University of Palermo
Copyright ©2007 Journal of Economic Integration

A computable general equilibrium model was used to analyze trade liberalization impacts on sustainability. On the basis of multilateral trade negotiations in Doha Round, partial trade liberalization (PTL) and deep trade liberalization (DTL) scenarios were designed to assess their impacts on economic, social and environmental dimensions of sustainability using selected indicators. In a short time period DTL scenario showed high sustainability performance for developed and developing regions. In a longer time period gradual trade liberalization (PTL) appeared to be more beneficial in terms of sustainability performance for developing and least developed regions. Under both PTL and DTL scenarios, the least developed countries would be worse off than more developed regions, suggesting that special treatments and time frame may need to be considered in future negotiation talks.

JEL classification: F13, Q01, C68

Keywords: Trade liberalization | Sustainable development | Computable general
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