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- one about how multilateral trade liberalization affects regional integration, the other about how it affects political … recent wave of regional integration arrangements. Alesina and others (1997), in discussing the number and size of countries … integration arrangements increases, the ratio of free trade areas to customs unions also increases. The same arguments are also …
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This paper examines various implications of preferential trade agreements, namely customs unions and free trade areas, in the context of a multicountry general equilibrium model. The model is calibrated to represent countries with symmetric endowments, and aggregate and disaggregate welfare...
Persistent link: https://www.econbiz.de/10014072156
The Kemp-Wan proposition on the existence of Pareto-improving customs union is extended by allowing the customs union to make trade agreements with non-members. We show that given some unused gains from trade a customs union improving its member' welfare with unchanged non-members' welfare...
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Until NAFTA, analyses of preferential trading arrangements began by assuming a customs union with a common external tariff, and the differences between customs unions and free trade agreements (FTAs) have been little analyzed. This paper points to some of the differences between FTAs and customs...
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