Economic Analysis of International Competition
Applying the GTAP Model

Capital Trade conducts trade policy analysis using the GTAP Model and database. The GTAP Model is a global computable general equilibrium model that can be used to assess the impact of tariffs, subsidies, free trade agreements, and other trade policy instruments on the macroeconomy and specific industries. The model is applied to the GTAP database, which currently incorporates trade, industry, and macroeconomic data for 87 regions and 57 commodities. Capital Trade has used the GTAP model to assess the trade and macroeconomic impacts of

• proposed free trade agreements involving Asian and European countries
• prolonged U.S. asbestos litigation
• currency fluctuations

Examples of Capital Trade studies using GTAP can be accessed at:

http://www.uscc.gov/researchpapers/2009/CAP%20TRADE%20China%27s%20Subsidies%20to%20Strategic%20%20Heavyweight%20Industries%20--%20FINAL%20Report%2023March2009.pdf

and http://www.econstrat.org/images/ESI_Research_Reports_PDF/toxic_torts_final.pdf.