This study offers an empirical microlevel analysis of the pass-through effects of the East African Community Common External Tariff on consumer prices in Kenya. Using data from the Kenya Integrated Household Budget Surveys conducted in 2005 and 2015, this research employs a fixed-effects model...

When the Asia Pacific Economic Cooperation (APEC) formally adopted the principle of “open regionalism” (OR) in its trade liberalization in 1991, many were optimistic that this approach suggested the bloc as a stepping stone toward global free trade. This optimistic view was reinforced by the...

This paper contributes to analysis of the extent to which multilateral trading agreements reached under GATT can liberalize the world economy. Its main conclusion is that free trade is not sustainable if production is fixed exogenously and utility is non-transferable. If production is fixed and...

Adherents to the “natural trading partner” hypothesis argue that forming a PTA is more likely to raise welfare if member countries already trade disproportionately with each other. Opponents of the hypothesis claim that the opposite is true: welfare is likely to be higher if member countries...

This paper shows that preferential trade agreements can emerge in an endogenous way. We use a simple international trade model where govern - ments fix their tariffs in order to maximize social welfare. We find that when countries behave in a non co-operative way this performance leads to tariff...

The European Union (EU) has a splendid record concerning enlargement. Judging by the increasing number of EU member countries, enlargement has been the most successful EU policy ever. The economic side of its eastern enlargement is, however, a hybrid bag of effects for the EU’s eastern...

This paper attempts to assess the discriminatory impact that the Trans-Pacific Partnership (TPP) agreement could have on the EU economy. It gives robust evidence that the discriminatory impact will be dramatic if the TPP is successful in reducing or abolishing “behind the border” barriers...

The objective of this paper is to examine the effects of political asymmetries on a FTA and a CU. I have shown that either a higher lobbying sensitivity to the foreign firm or a more susceptibility of politicians to lobbying are sufficient to lead to a higher tariff protection at the individual...

If South Asia and Sub-Saharan Africa are to become constructively engaged in the next attempt by World Trade Organization (WTO) members to liberalize trade multilaterally, they need to be convinced that there will be sufficient gains from trade reform to warrant the inevitable costs of...

This paper considers regional and unilateral trade policy options for the West Bank and Gaza (WBG). It examines the welfare implications of a free trade agreement (FTA) with Israel, a customs union (CU) with Israel, and a nondiscriminatory trade policy (NDTP). The analysis captures the fact that...