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Paradoxes in integration theory

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  • Carsten Kowalczyk
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    Abstract

    This paper presents a formal analysis of how global welfare is affected by changing tariff and subsidy rates. The discussion stresses three types of reform whereby, surprisingly, trade liberalization has the potential to reduce world welfare: a multilateral equi-proportionate reduction of tariffs and subsidies; a reduction of a tariff or subsidy rate which is not extreme; and the formation of a customs union. Copyright Kluwer Academic Publishers 1992

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    File URL: http://hdl.handle.net/10.1007/BF01886181
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    Bibliographic Info

    Article provided by Springer in its journal Open Economies Review.

    Volume (Year): 3 (1992)
    Issue (Month): 1 (February)
    Pages: 51-59

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    Handle: RePEc:kap:openec:v:3:y:1992:i:1:p:51-59

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    Web page: http://www.springerlink.com/link.asp?id=100323

    Related research

    Keywords: integration; customs unions; tariff reform;

    References

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    1. Hatta, Tatsuo & Fukushima, Takashi, 1979. "The welfare effect of tariff rate reductions in a many country world," Journal of International Economics, Elsevier, vol. 9(4), pages 503-511, November.
    2. Carsten Kowalczyk, 1990. "Welfare and Customs Unions," NBER Working Papers 3476, National Bureau of Economic Research, Inc.
    3. Fukushima, Takashi & Kim, Namdoo, 1989. "Welfare improving tariff changes : A case of many goods and countries," Journal of International Economics, Elsevier, vol. 26(3-4), pages 383-388, May.
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    Cited by:
    1. Dell'Aquila, Crescenzo & Sarker, Rakhal & Meilke, Karl D., 1999. "Regionalism And Trade In Agrifood Products," Working Papers 14591, International Agricultural Trade Research Consortium.
    2. ABE Kazutomo, 2007. "Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach," Discussion papers 07053, Research Institute of Economy, Trade and Industry (RIETI).
    3. Alan Deardorf, 2005. "Gains from Trade and Fragmentation," Working Papers 543, Research Seminar in International Economics, University of Michigan.

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