Trade policy

Over the years, ECOPA has developed leading expertise in the analysis of trade policy. Its approach, combining state-of-the-art modelling techniques with strong field experience, generates robust and well-researched recommendations in trade policy, including evaluations of free-trade agreements.

The impact of trade reforms depends on non-quantitative factors such as governments’ implementation capacities and the degree of compliance by beneficiaries and the public. ECOPA incorporates these variables at the outset of its analysis to deliver realistic and socially responsible recommendations.

ECOPA’s analytical toolbox is particularly adapted to the policy environment of developing and transitional countries, where data availability and quality can be major challenges. ECOPA’s standard techniques include:

• Computable general equilibrium (CGE) modelling - CGE modelling is the tool par excellence for quantitative analysis of free-trade agreements or macro-level trade policy changes. ECOPA has practical experience in building and using large CGE models in developing countries, particularly in impact evaluations of regional free-trade agreements.

 

• Partial equilibrium models - Partial equilibrium models can be used when the data required for CGE models are not available, or when analysis is focused on specific sectors, with no need for fully-fledged macro modelling.