Free trade agreements without delocation
AbstractSmall nations fear that FTAs with larger, richer nations will erode their industrial bases. These concerns are recognized in FTA and multilateral talks: small nations may explicitly or implicitly maintain higher trade barriers. Using a model where symmetric liberalization de-industrializes small, poor nations, we characterize the path of protection-asymmetries that allow liberalization without delocation. In welfare terms, the large nation prefers this no-delocation liberalization scheme only when barriers are sufficiently high; the small nation's ranking is reversed. An anti-delocation scheme involving international income transfers is also evaluated and found infeasible.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 33 (2000)
Issue (Month): 3 (August)
Contact details of provider:
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
Web page: http://economics.ca/cje/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Volker Nocke, 2003.
"A Gap for Me: Entrepreneurs and Entry,"
PIER Working Paper Archive
05-026, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 29 Sep 2005.
- Takatsuka, Hajime & Zeng, Dao-Zhi, 2012. "Trade liberalization and welfare: Differentiated-good versus homogeneous-good markets," Journal of the Japanese and International Economies, Elsevier, vol. 26(3), pages 308-325.
- Fugazza, Marco & Robert-Nicoud, Frédéric, 2006.
"Can South-South trade Liberalisation Stimulate North-South Trade ?,"
Journal of Economic Integration,
Center for Economic Integration, Sejong University, vol. 21, pages 234-253.
- Fugazza, Marco & Robert-Nicoud, Frédéric, 2006. "Can South-South Trade Liberalisation Stimulate North-South Trade?," CEPR Discussion Papers 5699, C.E.P.R. Discussion Papers.
- Fr�d�ric Robert-Nicoud, 2006. "Agglomeration and Trade with Input–Output Linkages and Capital Mobility," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(1), pages 101-126.
- Susanna Thede, 2005. "Trade Policy Formation when Geography Matters for Specialisation," Working Papers 200519, School Of Economics, University College Dublin.
- Ralph Ossa, 2010. "A 'New Trade' Theory of GATT/WTO Negotiations," NBER Working Papers 16388, National Bureau of Economic Research, Inc.
- Monika Mrazova, 2009. "Trade negotiations when market access matters," Economics Series Working Papers 447, University of Oxford, Department of Economics.
- Thede, Susanna, 2007. "Trade and Agglomeration: the Strategic use of Protection Revisited," Working Papers 2007:7, Lund University, Department of Economics.
- Hajime Takatsuka & Dao-Zhi Zeng, 2011. "Economic Integration and Welfare: Manufacturing vs. Agricultural Markets," ERSA conference papers ersa11p1720, European Regional Science Association.
- Ralph Ossa, 2008. "A 'new trade' theory of GATT/WTO negotiations," LSE Research Online Documents on Economics 19564, London School of Economics and Political Science, LSE Library.
- Toulemonde, Eric, 2006.
"Acquisition of skills, labor subsidies, and agglomeration of firms,"
Journal of Urban Economics,
Elsevier, vol. 59(3), pages 420-439, May.
- TOULEMONDE, Eric, . "Acquisition of skills, labor subsidies, and agglomeration of firms," CORE Discussion Papers RP -1923, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ralph Ossa, 2008. "A 'New Trade' Theory of GATT/WTO Negotiations," CEP Discussion Papers dp0877, Centre for Economic Performance, LSE.
- Frédéric Robert-Nicoud & Federica Sbergami, 1999. "Endogenous Regional Policy in a Model of Agglomeration," IHEID Working Papers 02-2001, Economics Section, The Graduate Institute of International Studies.
- Álvarez López , M.ª Elisa & Myro Sánchez, Rafael & Vega Crespo, Josefa, 2012. "Delocation in the manufacturing sectors in the EU. A regional overview," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 22, pages 5-34.
- Robert-Nicoud, Frederic & Sbergami, Federica, 2004. "Home-market vs. vote-market effect: Location equilibrium in a probabilistic voting model," European Economic Review, Elsevier, vol. 48(1), pages 155-179, February.
- Kyle Bagwell & Robert W. Staiger, 2009. "Delocation and Trade Agreements in Imperfectly Competitive Markets," NBER Working Papers 15444, National Bureau of Economic Research, Inc.
- MOSSAY, Pascal & TABUCHI, Takatoshi, 2012. "Preferential trade agreements harm third countries," CORE Discussion Papers 2012035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.