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An enhancement of modern free trade area theory

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  • Earl L. Grinols
  • Peri Silva

Abstract

This paper constructs a framework for analysing the welfare effects of free trade areas. We provide an alternative verification of the Panagariya-Krishna proposition on free trade areas, shortening the proof, covering a broader set of circumstances, and showing the necessary income flows to guarantee welfare gains to all members. The paper provides a theoretical parallel to the important Kemp and Wan custom union theory. Copyright 2007 , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oep/gpl026
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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 59 (2007)
Issue (Month): 2 (April)
Pages: 219-225

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Handle: RePEc:oup:oxecpp:v:59:y:2007:i:2:p:219-225

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Cited by:
  1. Earl L. Grinols & Peri Silva, 2008. "Rules of Origin and Gains from Trade," Development Working Papers 249, Centro Studi Luca d\'Agliano, University of Milano.
  2. Pascalis Raimondos-Møller & Alan D. Woodland, 2011. "Reciprocity, World Prices and Welfare," CESifo Working Paper Series 3607, CESifo Group Munich.

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