Saggi, Kamal; Yildiz, Halis Murat - Volkswirtschaftliche Fakultät, … - 2005
In a three country model with endogenous tariffs, this paper evaluates and contrasts the welfare effects of free trade …’s welfare is higher than that under free trade. Furthermore, if the common member is relatively efficient compared to the other … two countries, such a ‘hub and spoke’ pattern of FTAs can yield higher global welfare than free trade. By contrast, such …