Journal article
Understanding the Welfare Implications of Preferential Trade Agreements
Review of international economics, Vol.8(4), pp.619-633
11/2000
DOI: 10.1111/1467-9396.00246
Abstract
This paper examines various implications of preferential trade agreements, namely customs unions and free trade areas, in the context of a multicountry general equilibrium model. The model is calibrated to represent countries with symmetric endowments, and aggregate and disaggregate welfare change measures are used to quantify the welfare effects of preferential trade agreements. It is found that free trade areas are better than customs unions on welfare grounds for the world as a whole. Welfare decompositions suggest that a significant fraction of the welfare changes is explained by the volume-of-trade effect for both types of preferential trade agreements.
Details
- Title: Subtitle
- Understanding the Welfare Implications of Preferential Trade Agreements
- Creators
- M. Ayhan Kose - Brandeis UniversityRaymond Riezman - Brandeis University
- Resource Type
- Journal article
- Publication Details
- Review of international economics, Vol.8(4), pp.619-633
- DOI
- 10.1111/1467-9396.00246
- ISSN
- 0965-7576
- eISSN
- 1467-9396
- Publisher
- Blackwell Publishers Ltd
- Number of pages
- 15
- Language
- English
- Date published
- 11/2000
- Academic Unit
- Economics
- Record Identifier
- 9984963224002771
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