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The paper examines the formation of free trade agreements as a network formation game. We consider a three-country model in which international trade occurs between economies with imperfectly competitive product markets. Labor markets can be unionized and non-unionized in each country. We show...
Persistent link: https://www.econbiz.de/10014056261
-stage strategic trade and participation game, coalition and fringe countries dispose of a discriminatory tariff on dirty imports as … well as emission permits imposed on domestic producers and traded on a common permit market inside the coalition, or …
Persistent link: https://www.econbiz.de/10013435665
-linkage literature. In particular, we propose a preferential free trade agreement on which a climate coalition should be built. The basic … idea is that the benefits of free trade provide strong incentives for free riders to join the coalition. As a framework, a … heart of our approach are the trade privileges granted to coalition members shifting the terms of trade favourably without …
Persistent link: https://www.econbiz.de/10011776985
There has been a proliferation of preferential trade agreements within the last two decades. This paper analyzes the effects of free trade agreements (FTAs) on external tariffs in small economies where protection decisions are made politically. It extends the Grossman and Helpman (1995) model by...
Persistent link: https://www.econbiz.de/10013071326
There has been a proliferation of preferential trade agreements within the last two decades. In this paper I analyze the effects of free trade agreements (FTAs) on external tariffs under a political economy setup. I extend the Grossman and Helpman (1995) model by determining tariff rates...
Persistent link: https://www.econbiz.de/10013144598
Persistent link: https://www.econbiz.de/10013371148
In 2013, the European Union and United States initiated a new political dialogue regarding a further deepening of …
Persistent link: https://www.econbiz.de/10011495139
Although it is well-known that a global trade regime best ensures economic welfare, there has nevertheless been a proliferation of free trade agreements (FTAs) between individual countries. This poses the challenge known as the "noodle bowl effect" - stemming from different rules of origins and...
Persistent link: https://www.econbiz.de/10011317820
In the international investment context, this paper focuses on the expressive power of the FTAs or BITs; expression of them may impact the players in the games. First, the paper examines the boost of the BITs and FTAs. The main focus is to test the application of game theory to the FTAs or BITs;...
Persistent link: https://www.econbiz.de/10013065936
The paper examines the formation of free trade agreements (FTAs) as a network formation game. We consider a general n-country model in which countries trade differentiated industrial commodities as well as a numeraire good. Countries may be different in the size of the industrial good industry...
Persistent link: https://www.econbiz.de/10011325086