Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach

This paper presents assessments of the economic impacts of free trade agreements (FTAs) relating to Japan. The analysis relies on a simulation with a computable equilibrium model. The impacts of various combinations of FTAs are assessed to draw policy implications. This paper first reviews the theoretical framework, together with the specifications of the simulation model. Then, simulations in the various cases cover both Japan's bilateral FTAs and regional FTAs including Japan. The final section is a short summary of implications from the simulation work.