Arbeitspapier
Trade Diversion and Production Sharing
This paper examines the repercussions of cross-border production sharing for the welfare effects of preferential trade liberalization. In a general-equilibrium context, a free trade agreement (FTA), which incorporates production sharing, raises the likelihood of welfare improvement. Thus, two members of a free trade area, who each have comparative disadvantage in the production of a final product relative to a nonmember, may nevertheless enjoy net trade creation if they jointly possess comparative advantage in key components of that product. At a minimum, cross-border production sharing reduces the trade-diverting elements of an FTA. It follows, that rules of origin, viewed as constraints on cross-border fragmentation, augment the negative, tradediverting elements of free trade areas.
- Sprache
-
Englisch
- Erschienen in
-
Series: Claremont Colleges Working Papers ; No. 2004-01
- Klassifikation
-
Wirtschaft
Economic Integration
Trade Policy; International Trade Organizations
Neoclassical Models of Trade
- Thema
-
Trade Diversion
Free Trade Areas
Fragmentation
Production Networks
Aussenhandelspräferenz
Freihandelszone
Aussenhandelseffekt
Internationale Arbeitsteilung
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Arndt, Sven W.
- Ereignis
-
Veröffentlichung
- (wer)
-
Claremont McKenna College, Department of Economics
- (wo)
-
Claremont, CA
- (wann)
-
2004
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Arndt, Sven W.
- Claremont McKenna College, Department of Economics
Entstanden
- 2004
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