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Trade Policy and Illegal Immigration

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Author Info
Subhayu Bandyopadhyay (Department of Economics, West Virginia University)
Ryo Takashima (Department of Economics, West Virginia University)

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Abstract

We use a version of the Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. First, we consider the small union case and derive the Nash tariff equilibrium for two potential members of a Preferential Trade Agreement (PTA). We analyze conditions under which a movement from the Nash equilibrium to complete intra-bloc tariff elimination (FTA) is likely to be welfare augmenting. The paper also considers how reduction of the external tariff may impact the Nash equilibrium tariffs of the potential bloc members. The analysis is extended to the large union case to consider the conditions under which terms of trade of bloc members improve with respect to the non-member nation(s).

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File URL: http://www.be.wvu.edu/div/econ//work/pdf_files/05-04.pdf
File Format: application/pdf
File Function: First version, April, 2005
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Publisher Info
Paper provided by Department of Economics, West Virginia University in its series Working Papers with number 05-04.

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Length: 25 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:wvu:wpaper:05-04

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Related research
Keywords: Preferential Trade Agreement; illegal immigration; optimal tariff;

Other versions of this item:

Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Pia M. Orrenius, 2001. "Illegal immigration and enforcement along the U.S.-Mexico border; an overview," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q I, pages 2-11. [Downloadable!]
  2. Bond, Eric W. & Syropoulos, Constantinos & Winters, L. Alan, 2001. "Deepening of regional integration and multilateral trade agreements," Journal of International Economics, Elsevier, vol. 53(2), pages 335-361, April. [Downloadable!] (restricted)
    Other versions:
  3. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier. [Downloadable!] (restricted)
  4. Panagariya, Arvind & Krishna, Pravin, 2002. "On necessarily welfare-enhancing free trade areas," Journal of International Economics, Elsevier, vol. 57(2), pages 353-367, August. [Downloadable!] (restricted)
  5. Subhayu Bandyopadhyay, 2006. "Illegal Immigration and Second-best Import Tariffs," Review of International Economics, Blackwell Publishing, vol. 14(1), pages 93-103, 02. [Downloadable!] (restricted)
  6. Bond, Eric W. & Chen, Tain-Jy, 1987. "The welfare effects of illegal immigration," Journal of International Economics, Elsevier, vol. 23(3-4), pages 315-328, November. [Downloadable!] (restricted)
  7. Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March. [Downloadable!] (restricted)
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