GTAP 12 Model with CEPA Extensions

Production

Nested CES production functions with:

• Top level: Intermediates and Value Added
• Intermediate inputs from domestic and imported sources
• Value added from labor, capital, land, and natural resources
• CEPA extensions for FDI-augmented productivity

Trade

Armington structure featuring:

• Domestic vs imported goods differentiation
• Bilateral import sourcing with CEPA preferences
• Transport margins, tariffs, and NTMs
• CEPA-specific tariff phase-out schedules

Investment

FDI module with:

• Bilateral FDI flow tracking
• Investment facilitation effects
• Sector-specific FDI targeting
• Remittances and aid flows

Dynamics

Recursive annual solutions incorporating:

• Capital accumulation with FDI augmentation
• Population growth and labor force changes
• Technical progress with spillover effects
• Phased CEPA implementation

CEPA Model Parameters

Trade Parameters

Investment Parameters

FDI_FACILITATION: Increase in FDI flows due to CEPA (typically 30%)

FDI_SPILLOVER: Productivity spillover from FDI (default: 0.2)

FDI_SECTORS: Target sectors for FDI (Services, Manufacturing)

R Functions Reference

Core CEPA Model Functions

                    # Create CEPA model structure
structure <- create_cepa_structure(regions, commodities, endowments)
# Run CEPA simulation
results <- run_cepa_simulation(
  base_data, 
  baseline_shocks,
  cepa_shocks,
  start_year,
  end_year,
  cepa_params
)
# Analyze CEPA results
welfare <- welfare_decomposition_cepa(params, changes)
trade_impact <- calculate_trade_impact(baseline, policy, regions)
                  

Visualization Functions

                    # Plot CEPA GDP trajectories
plot_cepa_gdp_trajectories(baseline, policy, regions)
# Compare CEPA scenarios
compare_cepa_scenarios(baseline, policy, variable, regions)
# Export CEPA results
export_cepa_results_to_csv(results, output_dir)
create_cepa_summary_report(baseline, policy, filename)