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Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?

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Author Info
Anne O. Krueger
Abstract

Preferential trade arrangements, and especially free trade agreements, have mushroomed in importance in the 1990s. This has revived research on the effects of these arrangements, both on the welfare of the member countries and those excluded, and on the momentum for further liberalization of the open multilateral trading system. This paper reviews the analyses and evidence to date as to these effects, showing that analytically anything can happen and that, to date, there has been insufficient experience to draw conclusions from empirical evidence.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 13 (1999)
Issue (Month): 4 (Fall)
Pages: 105-124
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Handle: RePEc:aea:jecper:v:13:y:1999:i:4:p:105-124

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1998. "Continental Trading Blocs: Are They Natural or Supernatural?," NBER Chapters, in: The Regionalization of the World Economy, pages 91-120 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  2. Lawrence H. Summers, 1991. "Regionalism and the world trading system," Proceedings, Federal Reserve Bank of Kansas City, pages 295-301.
  3. Snape, Richard H., 1996. "Trade Discrimination - Yesterday's Problem?," Working Paper Series in Economics and Finance 100, Stockholm School of Economics.
  4. Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-19, September. [Downloadable!] (restricted)
  5. Bagwell, Kyle & Staiger, Robert W, 1998. "Will Preferential Agreements Undermine the Multilateral Trading System?," Economic Journal, Royal Economic Society, vol. 108(449), pages 1162-82, July. [Downloadable!] (restricted)
  6. L. Alan Winters, 1987. "Britain in Europe: a Survey of Quantitative Trade Studies," Journal of Common Market Studies, Blackwell Publishing, vol. 25(4), pages 315-335, 06. [Downloadable!] (restricted)
  7. Paul Krugman, 1991. "The move toward free trade zones," Proceedings, Federal Reserve Bank of Kansas City, pages 7-58.
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  8. Paul Krugman, 1989. "Is Bilateralism Bad?," NBER Working Papers 2972, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Ethier, Wilfred J, 1998. "The New Regionalism," Economic Journal, Royal Economic Society, vol. 108(449), pages 1149-61, July. [Downloadable!] (restricted)
  10. Bhagwati, Jagdish & Greenaway, David & Panagariya, Arvind, 1998. "Trading Preferentially: Theory and Policy," Economic Journal, Royal Economic Society, vol. 108(449), pages 1128-48, July. [Downloadable!] (restricted)
  11. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mun Heng Toh, 2006. "Singapore's Perspectives on the Proliferation of RTAs in East Asia and Beyond," Global Economic Review, Taylor and Francis Journals, vol. 35(3), pages 259-284, September. [Downloadable!] (restricted)
  2. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University. [Downloadable!]
  3. Sapir, André, 2000. "EC Regionalism at the Turn of the Millennium: Towards a New Paradigm?," CEPR Discussion Papers 2629, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Soamiely Andriamananjara, 2003. "Competitive Liberalization or Competitive Diversion? The Relationship between Preferential Trade Agreements and the Multilateral Trading System," International Trade 0305002, EconWPA. [Downloadable!]
  5. Tubagus Feridhanusetyawan, 2005. "Preferential Trade Agreements in the Asia-Pacific Region," IMF Working Papers 05/149, International Monetary Fund. [Downloadable!]
  6. Jong-Wha Lee & Innwon Park & Kwanho Shin, 2005. "Proliferating Regional Trade Arrangements: Why and Whither?," International Trade 0501010, EconWPA. [Downloadable!]
    Other versions:
  7. Austria, Myrna S., 2003. "East Asian Regional Cooperation: Approaches and Processes," Discussion Papers DP 2003-02, Philippine Institute for Development Studies. [Downloadable!]
  8. Lee, Jong-Wha & Shin, Kwanho, 2005. "Does Regionalism Lead to More Global Trade Integration in East Asia?," MPRA Paper 706, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  9. Austria, Myrna S., 2001. "Liberalization and Regional Integration: The Philippines' Strategy to Global Competitiveness," Discussion Papers DP 2001-09, Philippine Institute for Development Studies. [Downloadable!]
  10. Austria, Myrna S. & Avila, John Lawrence V., 2001. "Looking Beyond AFTA: Prospects and Challenges for Inter-regional Trade," Philippine Journal of Development, Philippine Institute for Development Studies, vol. 0(2), pages --1. [Downloadable!]
  11. repec:bep:eapcon:v:2:y:2003:i:1:p:1166-1166 is not listed on IDEAS
  12. Avila, John Lawrence V., 2004. "A Comparative Study of Bilateral FTA/CEP Arrangements," Discussion Papers DP 2004-28, Philippine Institute for Development Studies. [Downloadable!]
  13. Hazel Parcon, 2008. "Disaggregating PTAs at the Role of International Division of Labor on PTA Formation," Working Papers 200806, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
  14. Young, Linda M. & Wainio, John & Meilke, Karl, 2004. "Trade Remedy Actions In Nafta Agriculture And Agri-Food Industries," Keeping the Borders Open; Proceedings of the 8th Agricultural and Food Policy Systems Information Workshop - 2002 16935, Farm Foundation, Agricultural and Food Policy Systems Information Workshops. [Downloadable!]
  15. Michael Daly & Eugenia Lizano & Angelo Silvy, 2000. "Recent trends in tariff and nontariff barriers to trade in the United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(4), pages 724-752, December. [Downloadable!] (restricted)
  16. Grant, Jason H. & Lambert, Dayton M., 2005. "Regionalism in World Agricultural Trade: Lessons from Gravity Model Estimation," 2005 Annual meeting, July 24-27, Providence, RI 19269, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  17. Meilke, Karl D. & Huff, Karen, 2001. "Trade Liberalization Under Nafta: Where From Here?," Trade Liberalization Under NAFTA: Report Card on Agriculture; Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop -2000 16819, Farm Foundation, Agricultural and Food Policy Systems Information Workshops. [Downloadable!]
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