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 agreements (FTAs) and customs unions (CUs) — the two most commonly occurring preferential trade agreements (PTAs). We show that if the external tariff of a PTA is not too...