effects of free trade agreements (FTAs) on external tariffs in small economies where protection decisions are made politically … of an FTA. We find that the expectation of tariff reductions under endogenous tariffs could make an otherwise feasible … FTA if tariffs were fixed become infeasible. However, if domestic import-competing sectors are relatively smaller and the …

large reductions in import tariffs as an exogenous shock to the competitive environment, I also find that increased foreign …

This paper studies the macroeconomic impact of higher tariffs using a two-country DSGE model with endogenous trade and … heterogeneous firms. The analysis consists of two scenarios. First, we assume that one country increases tariffs while the other … does not. Second, both countries raise tariffs. In the first case, the country that did not raise tariffs suffers an …

We study, theoretically and empirically, how countries choose intra-bloc tariffs and preferential margins when they … to a customs union (where members coordinate external tariffs). Moreover, in customs unions (but not necessarily in free …

implications of a south-south customs union (CU) on the pattern of tariffs and welfare. We find that south countries always have … relative to north firms, a south-south CU leads to a large trade diversion effect and reduces world welfare. We further show …