Quotation Felbermayr, Gabriel, Kimura, Fukunari, Okubo, Toshihiro, Steininger, Marina. 2019. Quantifying the EU-Japan Economic Partnership Agreement. Journal of the Japanese and International Economies. 51 110-128.


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Abstract

This paper provides a quantitative analysis of the new EU-Japan Economic Partnership Agreement (EPA), the biggest bilateral deal that both the EU and Japan have concluded so far. It employs a generalized variant of the Eaton–Kortum (2002) model, featuring multiple sectors, input-output linkages, services trade, and non-tariff barriers (NTBs). It uses the results of an econometric ex post analysis of a related existing FTA, the one between the EU and Korea, to approximate the expected reductions in the costs of NTBs. This approach yields long-run welfare effects for Japan of about 18 bn USD per year (0.31% of GDP) and of about 15 bn USD (0.10%) for the EU. On average, the agreement does not appear to harm third countries. 14% of the welfare gains inside the EPA stem from tariffs, the remaining 86% from NTB reform, and the services sector account for more than half. In the EU, value added in the agri-food sector goes up most, while in Japan the manufacturing and services sectors gain.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Journal of the Japanese and International Economies
Citation Index SSCI
WU-Journal-Rating new VW-D
Language English
Title Quantifying the EU-Japan Economic Partnership Agreement
Volume 51
Year 2019
Page from 110
Page to 128
Reviewed? Y
URL https://api.elsevier.com/content/article/PII:S0889158318301357?httpAccept=text/xml
DOI http://dx.doi.org/10.1016/j.jjie.2018.12.007
Open Access N
JEL JEL: F15; F17; N74

Associations

People
Felbermayr, Gabriel (Details)
External
Kimura, Fukunari (Keio University, Japan)
Okubo, Toshihiro (Keio University, Japan)
Steininger, Marina (Ifo Institute, Germany)
Organization
Department of Economics (Felbermayr) (Details)
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