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This paper develops a theory of the endogenous formation of a common market in a three-country, two-factor political … emerge as an equilibrium, some factors must continue to experience enhanced protection when the integration process is … completed. This result highlights the potential tension between social desirability and political feasibility of the integration …
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There is a general class of model used to examine the expenditure and tax strategies adopted towards mobile factors by states that are members of regional unions (eg., federations, confederations or common markets). We develop a variant of this model, extended to allow for imperfect factor...
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