Analysis of the Impact of the CETA Trade Agreement between the EU and Canada on the Slovak Economy 1

This paper is focused on the impact arising from the conclusion of the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada on the Slovak economy, with an emphasis on the automotive industry, machinery industry and electronics industry. Its aim is to estimate the d...

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Bibliographic Details
Published in:Ekonomický časopis 2018-09, Vol.66 (8), p.771-797
Main Authors: Dovaľová, Gabriela, Hošoff, Boris, Kališ, Richard, Lábaj, Martin, Stracová, Erika
Format: Article
Language:English
Subjects:
Automobile industry
Collective bargaining
Economic growth
Electronics
Electronics industry
Employment
Exports
GDP
Gross Domestic Product
International trade
Machinery industry
Tariffs
Trade agreements
Value added
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Summary:This paper is focused on the impact arising from the conclusion of the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada on the Slovak economy, with an emphasis on the automotive industry, machinery industry and electronics industry. Its aim is to estimate the direct as well as indirect effects generated by changes in international trade on Slovakia's value added, exports and employment, using the multi-regional input-output model. Based on different variants of development, it is expected that the average impact of CETA on the Slovak economy, as a result of the removal of the tariff barriers, will amount to 0.013% GDP, while the impact on job creation was estimated at 0.012% of the total employment. Removing the tariff barriers should lead to an increase in exports to Canada on average by 8%, in the event of a strong reaction to a price drop even by 18%.
ISSN:0013-3035