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proffer and explore the proposition that South Africa could serve as the gateway for harnessing MNC geese flying from third … African gateways are emerging as alternatives to South Africa. And some SACU governments would prefer to build regional value … South Africa, may not attract many world leading MNCs since their markets are small, but could attract smaller regional …
Persistent link: https://www.econbiz.de/10011457940
We show that multilateral tariff binding liberalization substantially impacts the nature and extent of Preferential Trade Agreement (PTA) formation. First, it shapes the nature of forces constraining expansion of Free Trade Agreements (FTAs). The constraining force is a free riding incentive of...
Persistent link: https://www.econbiz.de/10012029164
The number of preferential trade agreements has greatly increased over the past two decades, yet most existing bilateral arrangements take the form of free trade areas, and less than ten percent can be considered to be fully fledged customs unions. This paper develops a political economy model...
Persistent link: https://www.econbiz.de/10003771814
This paper reviews the most significant recent developments in the theory of trade agreements. The paper offers an integrated approach to evaluating trade agreements, and uses the approach to present results on preferential and multilateral trade agreements. The paper identifies also several...
Persistent link: https://www.econbiz.de/10003850514
While "mega FTAs" and WTO-driven efforts at multilateral liberalisation dominate the agenda, customs unions (CU) are the silent success story of regional integration. Throughout the world, CUs have been superseding earlier FTAs, as new unions were formed or old ones expanded. Due to problems of...
Persistent link: https://www.econbiz.de/10011487987
This paper examines the welfare implications of non-discriminatory tariff reforms by a subset of countries, which we term a nonpreferential trading club. We show that there exist coordinated tariff reforms, accompanied by appropriate income transfers between these countries, that unambiguously...
Persistent link: https://www.econbiz.de/10011402587
In this paper we argue that strong political economy forces explain the rush of the EU to expand eastwards. We use a model of vertical product differentiation in order to claim that technologically- advanced EU firms (residing in high-income member countries) prefer a mutual market-opening with...
Persistent link: https://www.econbiz.de/10011409769
Following Turkey's application for EU membership in 1987, a Customs Union (CU) between Turkey and the EU, mainly covering trade in manufacturing goods and processed agricultural products, came into effect in 1995. In addition to a large agricultural sector, Turkey also specializes in the...
Persistent link: https://www.econbiz.de/10003201728
We study, theoretically and empirically, how countries choose intra-bloc tariffs and preferential margins when they form Preferential Trade Agreements (PTAs). Our model indicates that countries should set systematically lower preferential margins when the bloc takes the form of a free trade area...
Persistent link: https://www.econbiz.de/10012603023
In a three-country model of endogenous trade agreements, we study the implications of the Most Favored Nation Clause (MFN) when countries are free to form discriminatory preferential trade agreements (PTAs). While PTA members discriminate against non-member countries, MFN requires non-members to...
Persistent link: https://www.econbiz.de/10012174698