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Regionalism and the Rest of the World: The Irrelevance of the Kemp-Wan Theorem

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  • Winters, L. Alan

Abstract

Many commentators purport to use the Kemp-Wan Theorem to discuss the effects of regional integration schemes on non-member countries, and to operationalize the theorem in terms of the share of member countries' imports from non-members. This paper shows that Kemp and Wan (1976) say nothing about changes in non-member welfare and that the latter is more closely related to non-members' imports than to their shares of members' markets. The paper suggests that a new approach to this issue is required.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1316.

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Date of creation: Jan 1996
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Handle: RePEc:cpr:ceprdp:1316

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Keywords: Kemp-Wan Theorem; Regional Integration; Terms of Trade;

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Cited by:
  1. Céline CARRERE, 2011. "A new measure of tariff preference margins adjusted for import and domestic competition," Working Papers P19, FERDI.
  2. Cadot, Olivier & Carrère, Céline & de Melo, Jaime & Portugal-Pérez, Alberto, 2005. "How Much Market Access in FTAs? Textiles Under NAFTA," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5264, C.E.P.R. Discussion Papers.
  3. Kyle Bagwell & Robert W. Staiger, 1999. "Multilateral Trade Negotiations, Bilateral Opportunism and the Rules of GATT," NBER Working Papers 7071, National Bureau of Economic Research, Inc.
  4. Srinivasan, T. N., 1997. "The common external tariff of a customs union: Alternative approaches," Japan and the World Economy, Elsevier, Elsevier, vol. 9(4), pages 447-465, December.
  5. Souleymane COULIBALY, 2006. "Evaluating the Trade and Welfare Effects of Developing RTAs," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 06.03, Université de Lausanne, Faculté des HEC, DEEP.
  6. Schiff, Maurice & Chang, Won, 2003. "Market presence, contestability, and the terms-of-trade effects of regional integration," Journal of International Economics, Elsevier, vol. 60(1), pages 161-175, May.
  7. Howard J. Wall, 2002. "Has Japan been left out in the cold by regional integration?," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 25-36.
  8. Lucian Cernat, 2001. "ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?," International Trade, EconWPA 0109001, EconWPA.

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