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Comparative Advantage, Terms of Trade and Welfare Effects of European Integration: Some Preliminary Assessments

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  • Haaland, Jan I.

    (Norwegian School of Economics and Business Administration, Bergen, Norway)

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    Abstract

    The paper presents a first attempt at assessing general equilibrium effects of 1992. Two kinds of general equilibrium effects are relevant: one (dampening) effect stemming from the common resource constraints, the other one related to the fact that the relative competitiveness of industries may be altered as a consequence of the integration. This paper focuses on the second type of general equilibrium effects, and the results show that there may be additional gains for the EC stemming from terms-of-trade improvements and reduced dependence on subsidized and protected industries. The paper also presents general equilibrium assessments for Norway, under various assumptions regarding Norwegian participation in the integration process.

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    File URL: http://www.ifn.se/wfiles/wp/wp272.pdf
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    Bibliographic Info

    Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 272.

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    Length: 27 pages
    Date of creation: Nov 1990
    Date of revision:
    Handle: RePEc:hhs:iuiwop:0272

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    Related research

    Keywords: Economic integration; Welfare; Trade;

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    1. Richard Baldwin, 1989. "The Growth Effects of 1992," NBER Working Papers 3119, National Bureau of Economic Research, Inc.
    2. Haaland, Jan I, et al, 1987. " VEMOD: A Ricardo-Heckscher-Ohlin-Jones Model of World Trade," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(3), pages 251-70.
    3. Jan I. Haaland, 1990. "Assessing the Effects of EC Integration on EFTA Countries: the Position of Norway and Sweden," Journal of Common Market Studies, Wiley Blackwell, vol. 28(4), pages 379-400, 06.
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