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Towards a Common Market: Factor Mobility in a Customs Union

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  • Ian Wooton

Abstract

This paper examines whether the member countries of a customs union would gain from moving towards the next stage of economi c integration, the common market. When the set of common external tar iffs is not chosen optimally, increased factor mobility may reduce th e welfare of the customs union. However, common market formation is t he best policy when a customs union of any size sets its tariffs to t he appropriate levels.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 21 (1988)
Issue (Month): 3 (August)
Pages: 525-38

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Handle: RePEc:cje:issued:v:21:y:1988:i:3:p:525-38

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Krishna, Pravin & Panagariya, Arvind, 2000. "A unification of second best results in international trade," Journal of International Economics, Elsevier, vol. 52(2), pages 235-257, December.
  2. de Melo, Jaime & Montenegro, Claudio & Panagariya, Arvind, 1992. "Regional integration, old and new," Policy Research Working Paper Series 985, The World Bank.
  3. Foroutan, Faezeh, 1992. "Regional integration in sub-Saharan Africa : experience and prospects," Policy Research Working Paper Series 992, The World Bank.

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