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Welfare and Integration

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  • Kowalczyk, Carsten
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    Abstract

    This article argues that the terms-of-trade and volume-of-trade taxonomy from the theory of tariffs constitutes an attractive alternative to Viner's trade diversion and creation effects for the analysis of preferential trading arrangements. In applications of the alternative approach, the article establishes that results by Lipsey and Riezman on large versus small preunion trade flows for choice of partners are not "contradictory" and that under some conditions a small country's optimal strategy is to seek membership of multiple free-trade areas. Copyright 2000 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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    Bibliographic Info

    Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

    Volume (Year): 41 (2000)
    Issue (Month): 2 (May)
    Pages: 483-94

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    Handle: RePEc:ier:iecrev:v:41:y:2000:i:2:p:483-94

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    Cited by:
    1. Yildiz, Halis Murat, 2012. "Hub and Spoke Trade Agreements under Oligopoly with Asymmetric Costs," MPRA Paper 36501, University Library of Munich, Germany, revised 07 Feb 2012.
    2. Abrego, Lisandro & Riezman, Raymond & Whalley, John, 2006. "How often are propositions on the effects of regional trade agreements theoretical curiosa?," Journal of International Economics, Elsevier, vol. 68(1), pages 59-78, January.
    3. Taiji Furusawa & Hideo Konishi, 2003. "A Welfare Decomposition in Quasi-Linear Economies," Boston College Working Papers in Economics 569, Boston College Department of Economics.
    4. Carsten Kowalczyk & Raymond Riezman, 2009. "Trade Agreements," CESifo Working Paper Series 2660, CESifo Group Munich.
    5. Juyoung Cheong & Do Won Kwak & Kam Ki Tang, 2013. "It Is Much Bigger Than What We Thought: New Estimate of Trade Diversion," Discussion Papers Series 489, School of Economics, University of Queensland, Australia.
    6. Juyoung Cheong & Do Won Kwak & Kam Ki Tang, 2014. "Can Trade Agreements Curtail Trade Creation and Prevent Trade Diversion," Discussion Papers Series 500, School of Economics, University of Queensland, Australia.
    7. Hideo Konishi & Carsten Kowalczyk & Tomas Sjostrom, 2003. "Free Trade, Customs Unions, and Transfers," Boston College Working Papers in Economics 568, Boston College Department of Economics.
    8. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2004. "Regionalism," MTID discussion papers 65, International Food Policy Research Institute (IFPRI).

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