Showing 1 - 10 of 90
This paper considers the location effects of geographically-discriminatory trade policy. A preferential move towards a customs union attracts industry to the integrating countries. When internal barriers fall below some critical level, input-output links between imperfectly competitive firms...
Persistent link: https://www.econbiz.de/10005123966
Regional integration is on the rise again, despite its apparent failure among developing countries in the past. The paper first surveys the ambiguous economics of customs unions. We emphasize that the traditional dichotomy between `trade creation' and `trade diversion' is not particularly...
Persistent link: https://www.econbiz.de/10005497701
This paper surveys four ex-post quantitative studies of the effect of United Kingdom accession to the European Economic Countries on trade in manufactures. It starts by discussing the principal predictions of economic theory, establishing a framework for measuring integration effects, and...
Persistent link: https://www.econbiz.de/10005497789
Using an extension of the influence-driven lobbying approach developed by Grossman and Helpman, we study the impact of regional integration arrangements (RIAs) on trade policy towards non-members in a three-good, three-country model. We explore under what conditions the formation of an RIA...
Persistent link: https://www.econbiz.de/10005498086
This paper explores the links between international trade theory and the practice of trade and industrial policy in open economies, with special attention to three areas where theoretical lessons have been misunderstood in policy debates. It argues that the ‘concertina rule’ for tariff...
Persistent link: https://www.econbiz.de/10005498116
Partial cooperation in setting trade policy may be worse than no cooperation for countries who form a customs union … too small a percentage of the non-competitive sector of the industry, their cooperation may be disadvantageous for … forming the union comprise the entire non-competitive sector of industry, cooperation on trade policy may be disadvantageous …
Persistent link: https://www.econbiz.de/10005281305
The Zollverein was arguably the most important free-trade agreement of the 19th century. This paper investigates the economic impact of the Zollverein on trade in Germany. Although 1834 is the official date of the Zollverein's establishment, member states in fact joined in a non-random sequence...
Persistent link: https://www.econbiz.de/10011083241
The paper analyses tax and tariff policy for trade between economies which each contain a monopolistically competitive industry producing differentiated products. The consequences of tax changes by a single country are examined, and the general desirability of taxing imports more heavily than...
Persistent link: https://www.econbiz.de/10005662246
A customs union is enlarged by the addition of one or more new countries. What should be the consequential change in its common external tariff (CET)? The paper attempts to make this question precise and to apply it to the enlargement of the EC. In many simple trade models the optimal CET is...
Persistent link: https://www.econbiz.de/10005666709
We study a model in which a customs union trades with countries that behaved strategically. If the members of the customs union are similar but not identical, one country will want to delegate authority for making union policy to its partner. Even if side-payments within the union are permitted,...
Persistent link: https://www.econbiz.de/10005789087