Semester

Fall

Date of Graduation

2002

Document Type

Dissertation

Degree Type

PhD

College

Chambers College of Business and Economics

Department

Economics

Committee Chair

Subhayu Bandyopadhyay.

Abstract

The major contribution of this study is to quantify the economic impact of Kuwait's membership in the World Trade Organization (WTO) on supply, demand, welfare and terms of trade. A general equilibrium international trade model is used to obtain quantitative results. The model is theoretically static and based on the assumptions of perfect competition and constant returns to scale. However, it was estimated and simulated dynamically.;After specifying the model theoretically it is estimated empirically by linearizing the supply and demand equations that were obtained from solving the model analytically. The estimated model is used in a number of simulation exercises in each one a given agreement is analyzed and economic effects are measured.;The simulation exercises gave a number of results. First, the agreement on tariff reduction has a very small (positive) effect on Kuwait because tariff rates are already low, making any reductions to have insignificant effects. Second, the antidumping agreement has a larger (negative) effect since it corresponds to higher increase in the price of the importable good. Third, the decline in the world's price of the importable good as a result of globally implementing the WTO agreements has opposite effects but of the same magnitude to those of the antidumping agreement. Finally, the agreement on government procurement has the least effects since it increases exports only.

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