Title: Economic and welfare impacts of prospective India–Australia FTA using GTAP and SMART models

Authors: Shahid Ahmed

Addresses: Department of Economics, Jamia Millia Islamia, Central University, New Delhi 110025, India

Abstract: This study investigates the potential economic impacts of prospective India–Australia Free Trade Agreement (FTA) using a Computable General Equilibrium (CGE) model. Four hypothetical tariff liberalisation scenarios are examined in this study focusing on short and long run. The study reveals that both India and Australia gain in terms of welfare. Allocative efficiency for Australia and India broadly improves, suggesting that net trade creation occurs. The study recommends partial and selected tariff liberalisation as the best strategy in India|s interest while negotiating prospective India–Australia FTA.

Keywords: computable general equilibrium; CGE models; economic integration; emerging markets; GTAP; global trade analysis project; SMART; India Australia FTA; free trade agreements; tariff liberalisation.

DOI: 10.1504/IJBEM.2011.042999

International Journal of Business and Emerging Markets, 2011 Vol.3 No.4, pp.396 - 417

Published online: 17 Apr 2015 *

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