Free-Trade Areas and Welfare: An Equilibrium Analysis
نویسندگان
چکیده
منابع مشابه
1 Free - Trade Areas and Welfare : An Equilibrium Analysis
This paper examines the welfare effects of the formation of a free-trade area (a set of countries that abolish tariffs among member countries but let individual member countries to set external tariffs). If a representative consumer has love-of-variety preferences, the welfare function exhibits supermodularity in external tariffs: when a country is constrained to charge lower tariffs on imports...
متن کاملFree-Trade Areas and Welfare: An Equilibrium Analysis
This paper examines the welfare effects of the formation of a free-trade area (a set of countries which abolish tariffs among member countries but let individual countries to set external tariffs). If a representative consumer has love-of-variety preferences, the welfare function exhibits supermodularity in external tariffs: when a country is constrained to charge lower tariffs on imports of so...
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We construct a three-country model to determine how the formation of free trade areas (FTAs) affects optimal tariffs and welfare. We find that, at constant rest of the world (ROW) tariffs, the adoption of internal free trade induces union members to reduce their external tariffs below the Kemp–Wan [J. Int. Econom. 6 (1976) 95–97] level, and causes ROW’s terms of trade to improve and its welfare...
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Today, preferential and free trade agreements play an effective role in expanding trade in goods and services at the international level and as common practice in business planning and facilitating trade. The purpose of this article is to examine the trade and welfare effects of Iranchr('39')s free trade agreement with Turkey, India and Pakistan. For this purpose, using the Computable General E...
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Hub-and-Spoke Free Trade Areas* This paper analyzes how the sequential formation of free trade areas affects the volume of trade between member countries. In a three--country, three-good model, if two countries have a free trade area, and both sign a similar agreement with the third, trade between the two decreases, and welfare rises in both. However, if only one of them signs an FTA with the t...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 1998
ISSN: 1556-5068
DOI: 10.2139/ssrn.124572