Trade and Investment Liberalization in the Processed Food Market under the Comprehensive Economic and Trade Agreement

Trade and Investment Liberalization in the Processed Food Market under the Comprehensive Economic and Trade Agreement

Blog Article

We investigate the impacts of Comprehensive Economic and Trade Agreement (CETA) liberalizations of trade and investment Pumpkin barriers on processed food markets.Using a four-region monopolistic competition model with heterogeneous food-processing firms that incorporates domestically operating, exporting, and multinational enterprise (MNE) firms, we quantify the effects of tariff elimination, fixed trade cost reduction, and foreign direct investment (FDI) cost AEG IDK84451IB - 83cm Induction Hob with Integrated Hood - Black - 942 150 636 reduction under CETA on prices, domestic sales, bilateral trade flows, affiliate sales, productivity, number of firms, and aggregate output.Our results highlight that trade liberalization promotes bilateral exports but reduces foreign affiliate sales, and, in contrast, lower FDI costs expand MNE affiliate sales but curtail bilateral exports.