The effect of economic globalization on the convergence in efficiency of the countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership: 2020 Prospective

Abstract

With the new paradigm of the United States signing bilateral commercial agreements, and with the premise of America First, its withdrawal from the Trans-Pacific-Partnership brought about the modification of the agreement by the other economies that have signed it in order to configure the Comprehensive-and-Progressive-Agreement-for-Trans-Pacific-Partnership with the intention of maintaining it without the US. Because of this, the objective of this research is to analyze the effect of the agreement ratification on the technical efficiency and convergence in efficiency of these economies. For this, an efficiency indicator was obtained through the methodology of a stochastic frontier analysis. Among the main findings was that, with cooperation, the efficiency of the economies improves, and it also encourages convergence in the use of production factors. Furthermore, it was identified that, on average, the economies could grow an additional 1.5% for the year 2020, due to the cooperation generated by the agreement.