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The Impact of TTIP: The underlying economic model and comparisons

Author

Listed:
  • Pelkmans, Jacques
  • Lejour, Arjan
  • Schrefler, Lorna
  • Mustilli, Federica
  • Timini, Jacopo
Abstract
What are the economic and other impacts of the Transatlantic Trade and Investment Partnership? At the request of the European Parliament, CEPS has provided an appraisal of the TTIP Impact Assessment carried out by the European Commission, with special elaboration of the underlying economic model. The methodology applied by the Centre for Economic Policy Research (CEPR) for this economic modelling is analysed in depth, together with the assumptions used to make TTIP amenable to an economic appraisal. The research paper also compares the IA on TTIP with selected previous empirical economic assessments of EU trade agreements and with a set of alternative studies on TTIP itself. In reading our findings, two central caveats should be kept in mind that affect any analysis of the CGE model included in the European Commission’s Impact Assessment. First, TTIP is a rather unusual bilateral trade agreement; and second, TTIP is so wide-ranging that an alternative approach, such as the so-called ‘partial’ (equilibrium) approach – already a second-best solution – would be totally inappropriate to the case under examination.

Suggested Citation

  • Pelkmans, Jacques & Lejour, Arjan & Schrefler, Lorna & Mustilli, Federica & Timini, Jacopo, 2014. "The Impact of TTIP: The underlying economic model and comparisons," CEPS Papers 9710, Centre for European Policy Studies.
    • Handle: RePEc:eps:cepswp:9710
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    File URL: http://www.ceps.eu/system/files/No%2093%20Appraisal%20of%20IA%20on%20TTIP.pdf
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    References listed on IDEAS

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    Cited by:

    1. Berthold Busch & Jürgen Matthes, 2016. "Brexit: The Economic Impact – A Survey," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(2), pages 37-44, August.
    2. José M. Rueda-Cantuche & Tamas Revesz & Antonio F. Amores & Agustín Velázquez & Marian Mraz & Emanuele Ferrari & Alfredo J. Mainar-Causapé & Letizia Montinari & Bert Saveyn, 2020. "Improving the European input–output database for global trade analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-16, December.
    3. Gabriel Felbermayr & Wilhelm Kohler & Rahel Aichele & Günther Klee & Erdal Yalcin, 2015. "Potential impact of the Transatlantic Trade and Investment Partner (TTIP) on developing and emerging countries," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 67, September.
    4. Elzbieta Czarny & Pawel Folfas, 2015. "World Trade And Regional Trade Orientation In The Context Of Forthcoming Transatlantic Trade And Investment Partnership," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 10(3), pages 105-128, September.
    5. Gabriel Felbermayr, 2016. "Economic Analysis of TTIP," ifo Working Paper Series 215, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Messerlin, Patrick, 2015. "The Services Dimension of TTIP," CEPS Papers 10550, Centre for European Policy Studies.
    7. Timothy E. Josling & Stefan Tangermann, 2015. "Transatlantic Food and Agricultural Trade Policy," Books, Edward Elgar Publishing, number 15889.
    8. Berthold Busch & Jürgen Matthes, 2016. "Brexit: The Economic Impact – A Survey," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(02), pages 37-44, August.

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