Arbeitspapier

Trade policy and illegal immigration

We use a version of the Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. First, we consider the small union case and derive the Nash tariff equilibrium for two potential members of a Preferential Trade Agreement (PTA). We analyze conditions under which a movement from the Nash equilibrium to complete intra-bloc tariff elimination (FTA) is likely to be welfare augmenting. The paper also considers how reduction of the external tariff may impact the Nash equilibrium tariffs of the potential bloc members. The analysis is extended to the large union case to consider the conditions under which terms of trade of bloc members improve with respect to the non-member nation(s).

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 1568

Klassifikation
Wirtschaft
Neoclassical Models of Trade
International Migration
Thema
preferential trade agreement
illegal immigration
optimal tariff

Ereignis
Geistige Schöpfung
(wer)
Bandyopadhyay, Subhayu
Takashima, Ryo
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2005

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Bandyopadhyay, Subhayu
  • Takashima, Ryo
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2005

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