Chang, Yang-Ming; Xiao, Renfeng - In: Japan and the World Economy 33 (2015) C, pp. 28-43
This paper examines differences in welfare implications between a free trade area (FTA) and a customs union (CU) for member countries differing in their market sizes. In a stylized three-country model of trade under oligopoly, we take into account the conditions that FTA members set external...