Can a preferential trade agreement benefit neighbor countries without compensating them?

Arbeitspapier

PTAs are generally negotiated without any tariff concessions or transfers to non-member countries. Can such a PTA benefit the neighbors' welfare? In a two-good competitive equilibrium model in the absence of an entrepôt, a PTA without concessions to the outside will hurt the outsider's welfare when goods are normal. If one of the member countries is an entrepôt, however, it definitely improves the neighbors' welfare. In a multiple-good model, a PTA without concessions deteriorates the neighbors' welfare, provided that all the goods are normal and substitutes, and that initial tariff levels are small.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Center Discussion Paper ; No. 961

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Neoclassical Models of Trade ; Trade Policy; International Trade Organizations ; Economic Integration
• Thema: PTA ; neighbor's welfare ; Kemp-Wan theorem ; WTO ; GATT article 24 ; Entrepôt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Endoh, Masahiro ; Hamada, Koichi ; Shimomura, Koji
• Ereignis: Veröffentlichung
• (wer): Yale University, Economic Growth Center
• (wo): New Haven, CT
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/27000
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ