IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/4198.html
   My bibliography  Save this paper

Hubs and Spokes, and Free Trade in the Americas

Author

Listed:
  • Carsten Kowalczyk
  • Ronald J. Wonnacott

Abstract

This paper compares two possible formats for free trade in the Americas: a system of spokes surrounding a U.S. hub, and a free trade area. The paper identifies the sources of welfare change, and it argues that a country's attitude towards a system depends on whether the arrangement is a complement or a substitute trading club. The paper argues also that rent-seeking activities, and costs of administration and transportation, are likely to be higher in a hub-and-spoke system than in a free trade area.

Suggested Citation

  • Carsten Kowalczyk & Ronald J. Wonnacott, 1992. "Hubs and Spokes, and Free Trade in the Americas," NBER Working Papers 4198, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4198
    Note: ITI
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w4198.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jones, Ronald W, 1969. "Tariffs and Trade in General Equilibrium: Comment," American Economic Review, American Economic Association, vol. 59(3), pages 418-424, June.
    2. Franz Gehrels, 1956. "Customs Union from a Single-Country Viewpoint," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 61-64.
    3. Carsten Kowalczyk, 1990. "Welfare and Customs Unions," NBER Working Papers 3476, National Bureau of Economic Research, Inc.
    4. Ronald J. Wonnacott, 1975. "Canada's Future in a World of Trade Blocs: A Proposal," Canadian Public Policy, University of Toronto Press, vol. 1(1), pages 118-130, Winter.
    5. David Cox & Richard G. Harris, 1986. "A Quantitative Assessment of the Economic Impact on Canada of Sectoral Free Trade with the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 19(3), pages 377-394, August.
    6. Ronald J. Wonnacott, 1982. "Controlling Trade and Foreign Investment in the Canadian Economy: Some Proposals," Canadian Journal of Economics, Canadian Economics Association, vol. 15(4), pages 567-585, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ronald J. Wonnacott, 2011. "Preferential Liberalisation in a Hub-and-Spoke Configuration versus a Free Trade Area," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 6, Edward Elgar Publishing.
    2. Hur, Jung & Alba, Joseph D. & Park, Donghyun, 2010. "Effects of Hub-and-Spoke Free Trade Agreements on Trade: A Panel Data Analysis," World Development, Elsevier, vol. 38(8), pages 1105-1113, August.
    3. Hideo Konishi & Carsten Kowalczyk & Tomas Sjostrom, 2003. "Free Trade, Customs Unions, and Transfers," Boston College Working Papers in Economics 568, Boston College Department of Economics.
    4. Hoekman, Bernard & Djankov, Simeon, 1997. "Effective protection and investment incentives in Egypt and Jordan during the transition to free trade With Europe," World Development, Elsevier, vol. 25(2), pages 281-291, February.
    5. George Deltas & Klaus Desmet & Giovanni Facchini, 2012. "Hub‐and‐spoke free trade areas: theory and evidence from Israel," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(3), pages 942-977, August.
    6. Carsten Kowalczyk & Raymond Riezman, 2013. "Trade Agreements," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 13, pages 367-388, Palgrave Macmillan.
    7. Arvind Panagariya, 2003. "Preferential Trading and Welfare: The Small-Union Case Revisited," International Trade 0308009, University Library of Munich, Germany.
    8. Wonnacott, Paul & Wonnacott, Ronald J., 1995. "Liberalization in the western hemisphere: New challenges in the design of a free trade agreement," The North American Journal of Economics and Finance, Elsevier, vol. 6(2), pages 107-119.
    9. Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
    10. Jiandong Ju & Kala Krishna, 2005. "Firm behaviour and market access in a Free Trade Area with rules of origin," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(1), pages 290-308, February.
    11. Chao, Chi-Chur & Yu, Eden S. H., 1995. "The shadow price of foreign exchange in a dual economy," Journal of Development Economics, Elsevier, vol. 46(1), pages 195-202, February.
    12. Langhammer, Rolf J., 1980. "Effekte der Handelsschaffung und Handelsumlenkung," Open Access Publications from Kiel Institute for the World Economy 3691, Kiel Institute for the World Economy (IfW Kiel).
    13. Michael J. Dueker, 1995. "Tariffs and asset market structure: some basic comparative dynamics," Working Papers 1995-009, Federal Reserve Bank of St. Louis.
    14. Séguin Dulude, Louise, 1986. "Quelques réflexions sur la complémentarité des approches marginaliste et managériale," L'Actualité Economique, Société Canadienne de Science Economique, vol. 62(2), pages 157-165, juin.
    15. Paul Brenton & Natalia Tonrdyeva & Jhon Whalley, 2014. "The Potential Trade Effects of an FTA between the EU and Russia," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 5, pages 83-103, World Scientific Publishing Co. Pte. Ltd..
    16. Jensen, Jesper & Tarr, David G., 2010. "Regional trade policy options for Tanzania : the importance of services commitments," Policy Research Working Paper Series 5481, The World Bank.
    17. Raymond Riezman, 1999. "Can Bilateral Trade Agreements Help Induce Free Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 32(3), pages 751-766, May.
    18. Bagwell, Kyle & Staiger, Robert W, 1997. "Multilateral Tariff Cooperation during the Formation of Free Trade Areas," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 291-319, May.
    19. Soo Yuen Chong & Jung Hur, 2007. "Overlapping Free Trade Agreements of Singapore-USA-Japan : A Computational Analysis," Trade Working Papers 21931, East Asian Bureau of Economic Research.
    20. David Karemera & Won W. Koo, 1994. "Trade Creation And Diversion Effects Of The U.S.‐Canadian Free Trade Agreement," Contemporary Economic Policy, Western Economic Association International, vol. 12(1), pages 12-23, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4198. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.