Customs Union or Free Trade Area? The Role of Political Asymmetries
AbstractWhen trade policy is determined endogenously by lobbying, it matters whether countries are arranged into a customs union or a free trade area. This paper compares the two regimes when the member governments are asymmetric in their susceptibilities to lobbying and in their bargaining power within a customs union. In the model, a customs union never leads to lower tariffs for both countries, whereas it can lead to higher tariffs for both. Copyright 1999 by Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 7 (1999)
Issue (Month): 4 (November)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
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- Subhayu Bandyopadhyay & Sajal Lahiri & Howard J. Wall, 2009. "Cross-border lobbying in preferential trading agreements: implications for external tariffs," Working Papers 2009-041, Federal Reserve Bank of St. Louis.
- Subhayu Bandyopadhyay & Sajal Lahiri & Suryadipta Roy, 2008.
"Political asymmetry and common external tariff in a customs union,"
2007-038, Federal Reserve Bank of St. Louis.
- Subhayu Bandyopadhyay & Sajal Lahiri & Suryadipta Roy, 2011. "Political Asymmetry And Common External Tariffs In A Customs Union," Economics and Politics, Wiley Blackwell, vol. 23(1), pages 88-106, 03.
- Subhayu Bandyopadhyay & Sajal Lahiri & Suryadipta Roy, 2008. "Enlargement and common external tariff in a political-economic model of customs union," Working Papers 2008-022, Federal Reserve Bank of St. Louis.
- Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany.
- Wall, Howard-J, 2002.
"Has Japan Been Left Out in the Cold by Regional Integration?,"
Monetary and Economic Studies,
Institute for Monetary and Economic Studies, Bank of Japan, vol. 20(2), pages 117-134, April.
- Howard J. Wall, 2002. "Has Japan been left out in the cold by regional integration?," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 25-36.
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