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Externalities and Free Trade Agreements

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Author Info

  • Grafe, F.
  • Mauleon, A.

Abstract

This paper studies the consequences of a private or depletable externality on free trade agreements in a general equiilibrium framework. It is shown that there always exists a stable system of free trade spaces in the world economy. This stable system can result in either non-cooperation, partial cooperation, or total cooperation among countries of different types.

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Bibliographic Info

Paper provided by ASSET (Association of Southern European Economic Theorists) in its series ASSET - Instituto De Economia Publica with number 172.

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Length: 21 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:inecpu:172

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Postal: ASSET - Instituto De Economia Publica Facultad de Ciencias Economicas Y Empresariales . Avenida Lehendakari Aguirre, 83. 48015 Bilbao. Spain
Phone: + 33 - 4 91 14 07 70
Fax: + 33 - 4 91 90 02 27
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Web page: http://www.vcharite.univ-mrs.fr/ASSET/
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Keywords: EXTERNALITIES ; FREE TRADE ; GENERAL EQUILIBRIUM;

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Cited by:
  1. Ana, MAULEON & Huasheng, SONG & Vincent, VANNETELBOSCH, 2006. "Networks for Free Trade Agreements among Heterogeneous Countries," Discussion Papers (ECON - Département des Sciences Economiques) 2006029, Université catholique de Louvain, Département des Sciences Economiques.

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