Bilateral versus Multilateral Free Trade Agreements: A Welfare Analysis
نویسندگان
چکیده
منابع مشابه
Endogenous Free Trade Agreements and the Multilateral Trading System
I evaluate in this paper the impact of free trade areas (FTAs) on the world trading system. I use an oligopolistic-political-economy model where the external tariffs of FTA members, as well as the decision to form FTAs, are endogenously determined. In this context, I show that FTAs are primarily beneficial to the multilateral trading system. This conclusion is based, first, upon the finding tha...
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One of the most striking development in the world trading system since the mid 1990s is a surge in Regional Trade Agreements (RTAs). From about 50 till 1990, the number of RTAs notified to the World Trade Organization (WTO) has crossed 250 in 2003 and estimates indicate that over 300 RTAs will be in effect by 2007. Initially WTO encouraged the growth of RTAs because it believed that regional in...
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Overlapping bilateral free trade agreements (FTAs) are proliferating in East Asia. Quite a few economists worry about the spaghetti bowl phenomenon expected from the proliferating East Asian regional trade agreements (RTAs).The complicated web of hub-and-spoke type of FTAs can result in high costs for verifying rules of origin (RoO). As an alternative policy option to avoid the negative effect ...
متن کاملForbearance in optimal multilateral trade agreements∗
I present a theory of optimal multilateral trade agreements with public political shocks. I show that “forbearance” where one country withholds retaliation when its trading partner receives a shock is a feature of an optimal agreement. This provides a rationale for countries not acting on retaliatory rights granted under GATT. I show that there is a limit to forbearance allowable in a self-enfo...
متن کاملBilateral Free Trade Agreements – How do Countries Choose Partners?
While the debate on whether countries should or should not sign trade agreements with selected partners continues, governments have significantly stepped up the rate at which they enter into such agreements. A number of such agreements have been signed lately and many more are under negotiation. Multinational firms get impacted by these agreements irrespective of whether these are beneficial to...
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ژورنال
عنوان ژورنال: Review of International Economics
سال: 2014
ISSN: 0965-7576
DOI: 10.1111/roie.12131