The Michigan BDS Model
of World Production and Trade

VERSIONS

The Michigan Brown-Deardorff-Stern Model includes up to eight countries and country groups, which can be selected from the database of 34 countries or more (we've added several other countries for special purposes). Different versions of the model have been constructed for different purposes, and are identified by the following names. (These names play no role in the papers we have written, since each uses only one version. However these names may be useful for comparing models across papers here.) The country groupings and a few other details of the different versions are listed in separate tables below. These are followed by listings of the industries and countries used in the various models.

Versions of the BDS Model
Name Purpose: To Analyze the Effects of . . .
NAFTA Version Formation of North American Free Trade Area
WHFTA Version Formation of a Western Hemisphere Free Trade Area
East Asia Version Formation of an East Asian Free Trade Area
Uruguay Round Version Uruguay Round of Multilateral Trade Negotiations
CEC Version Central and East European Country Integration with European Union
Tunisia Version Free Trade between Tunisia and the European Union
NAFTA Version
Country/Group Includes
United States United States
Canada Canada
Mexico Mexico
Other Developed: Australia, Austria, Belgium-Luxembourg, Denmark, Germany, Finland, France, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Sweden, Switzerland, United Kingdom
Less Developed: Argentina, Brazil, Chile, Colombia, Greece, Hong Kong, India, Israel, Portugal, Singapore, South Korea, Spain, Taiwan, Turkey, Yugoslavia
Base Year: 1989
Sectors: 23 tradable, 6 nontradable (services sectors, ISIC 4-9)
Papers: "A North American Free Trade Agreement: Analytical Issues and a Computational Assessment" (1992)
"North American Integration" (1992)
"A U.S.-Mexico-Canada Free Trade Agreement: Sectoral Employment Effects and Regional/Occupational Employment Realignments in the United States" (1992)

WHFTA Version
Country/Group Includes
Argentina Argentina
Brazil Brazil
Canada Canada
Chile Chile
Colombia Colombia
Mexico Mexico
United States United States
Other Developed: Australia, Austria, Belgium-Luxembourg, Denmark, Germany, Finland, France, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Sweden, Switzerland, United Kingdom
Less Developed: Greece, Hong Kong, India, Israel, Portugal, Singapore, South Korea, Spain, Taiwan, Turkey, Yugoslavia
Base Year: 1990
Sectors: 23 tradable, 6 nontradable (services sectors, ISIC 4-9)
Papers: "Computational Analysis of the Accession of Chile to the NAFTA and Western Hemisphere Integration" (1999)
"Expanding NAFTA: Economic Effects of Accession of Chile and Other Major South American Nations" (1995)
"An Assessment of Extending NAFTA to Other Major Trading Countries in South America" (1994)

East Asia Version
Country/Group Includes
Canada Canada
Japan Japan
South Korea South Korea
Mexico Mexico
Singapore Singapore
Taiwan Taiwan
United States United States
Other Developed: Australia, Austria, Belgium-Luxembourg, Denmark, Germany, Finland, France, Ireland, Italy, Netherlands, New Zealand, Norway, Sweden, Switzerland, United Kingdom
Less Developed: Argentina, Brazil, Chile, Colombia, Greece, Hong Kong, India, Israel, Portugal, Spain, Turkey, Yugoslavia
Base Year: 1990
Sectors: 23 tradable, 6 nontradable (services sectors, ISIC 4-9)
Papers: "Economic Effects of an East Asian Regional Trading Bloc" (1997)
"Computational Analysis of the Economic Effects of an East Asian Preferential Trading Bloc" (1996)

Uruguay Round Version
Country/Group Includes
United States United States
Canada Canada
Mexico Mexico
Europe Austria, Belgium-Luxembourg, Denmark, Germany, Finland, France, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom
Japan Japan
Asian NICs Hong Kong, South Korea, Singapore, Taiwan
Australia-New Zealand Australia, New Zealand
Other Trading Nations Argentina, Brazil, Chile, Colombia, India, Israel, Turkey, Venezuela
Base Year: 1990
Sectors: 29 tradable (including services)
Papers: "Modelling Multilateral Trade Liberalization in Services" (1996)
"The Liberalization of Services Trade: Potential Impacts in the Aftermath of the Uruguay Round" (1996)

CEC Version
Country/Group Includes
Czechoslovakia Czechoslovakia
Hungary Hungary
Poland Poland
NAFTA Canada, Mexico, United States
EU-EFTA Austria, Finland, Sweden
EU-South Greece, Spain, Portugal
EU-North Belgium-Luxembourg, Denmark, France, Germany, Ireland, Italy, Netherlands, United Kingdom
Other Australia, Israel, Japan, New Zealand, Norway, Switzerland, Turkey Argentina, Brazil, Chile, Colombia Hong Kong, India, South Korea, Singapore, Taiwan
Base Year: 1992
Sectors: 29 tradable (including services)
Papers: "An Economic Assessment of the Integration of Czechoslovakia, Hungary, and Poland into the European Union" (1997)

Tunisia Version
Country/Group Includes
Tunisia Tunisia
Mediterranean EU Greece, Portugal, Spain
France-Italy France, Italy
Other EU Belgium-Luxembourg, Denmark, Germany, Ireland, Netherlands, United Kingdom
Other Europe Austria, Finland, Israel, Norway, Sweden, Switzerland, Turkey
Asia-Pacific Hong Kong, Japan, South Korea, Singapore, Taiwan, India, Australia, New Zealand
NAFTA Canada, Mexico, United States
South America Argentina, Brazil, Chile, Colombia
Base Year: 1990
Sectors: 29 tradable (including services)
Papers: "Some Economic Effects of the Free Trade Agreement Between Tunisia and the European Union" (1997)

Industry Sectors of the Michigan Model
ISIC Industry Default Industry Structure
1 Agriculture, Forestry, and Fisheries Perfectly Competitive
310 Food, Beverages, and Tobacco Monop. Comp. with IRTS
321 Textiles Monop. Comp. with IRTS
322 Wearing Apparel Monop. Comp. with IRTS
323 Leather Products Monop. Comp. with IRTS
324 Footwear Monop. Comp. with IRTS
331 Wood Products Monop. Comp. with IRTS
332 Furniture and Fixtures Monop. Comp. with IRTS
341 Paper and Paper Products Monop. Comp. with IRTS
342 Printing and Publishing Monop. Comp. with IRTS
35A Chemicals Monop. Comp. with IRTS
35B Petroleum and Related Products Monop. Comp. with IRTS
355 Rubber Products Monop. Comp. with IRTS
36A Nonmetallic Mineral Products Monop. Comp. with IRTS
362 Glass and Glass Products Monop. Comp. with IRTS
371 Iron and Steel Monop. Comp. with IRTS
372 Nonferrous Metals Monop. Comp. with IRTS
381 Metal Products Monop. Comp. with IRTS
382 Nonelectric Machinery Monop. Comp. with IRTS
383 Electric Machinery Monop. Comp. with IRTS
384 Transportation Equipment Monop. Comp. with IRTS
38A Miscellaneous Manufactures Monop. Comp. with IRTS
2 Mining and Quarrying Perfectly Competitive
4 Electicity, Gas, and Water Perfectly Competitive
5 Construction Perfectly Competitive
6 Wholesale and Retail Trade Perfectly Competitive
7 Transportation, Storage, and Communication Perfectly Competitive
8 Finance, Insurance, and Real Estate Perfectly Competitive
9 Community, Social, and Personal Services Perfectly Competitive

Countries of the Michigan Model
Original 18
Developed 		Original 16
Less Developed 		Others Added
for Later Models
Australia Argentina Czechoslovakia
Austria Brazil Hungary
Belgium-Luxembourg Chile Poland
Canada Colombia Tunisia
Denmark Greece Venezuela
Germany Hong Kong
Finland India
France Israel
Ireland Mexico
Italy Portugal
Japan Singapore
Netherlands South Korea
New Zealand Spain
Norway Taiwan
Sweden Turkey
Switzerland Yugoslavia
United Kingdom
United States

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