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The Structure of the FTAP model
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2001
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EngineeringTradeModeling MethodEconomic IntegrationTrade LiberalisationInternational InvestmentInternational Financial ArchitectureElectromagnetic CompatibilityInternational FinanceSystems EngineeringCommercial PolicyModeling And SimulationInternational BusinessPhysical LayerEconomicsFtap ModelInternational Capital MarketFinanceServices LiberalisationMacroeconomicsBusinessTheoretical ModelingData Modeling
The FTAP model is a comparative static, computable general equilibrium model of the world economy that includes a treatment of foreign direct investment on a bilateral basis. The FTAP model was developed from the GTAP model, with the addition of the structure necessary to support the analysis of services liberalisation. A major component of this liberalisation is the removal of barriers to FDI in the tertiary sector. The database for the version of FTAP available from the Productivity Commission's web site (see download instructions) is a 19 region, 3 commodity (primary, secondary and tertiary) representation of the world economy after the full implementation of the Uruguay Round (UR) of trade liberalisation. The treatment of FDI follows closely the pioneering work of Peter Petri. FTAP also incorporates increasing returns to scale and large-group monopolistic competition in all sectors after the manner of Joseph Francois. Finally, FTAP makes provision for capital accumulation and international borrowing and lending. This uses a treatment of international (portfolio) capital mobility developed by Robert McDougall.