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Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?

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Listed author(s):
  • Anne O. Krueger
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    Abstract

    Preferential trade arrangements, and especially free trade agreements, have mushroomed in importance in the 1990s. This has revived research on the effects of these arrangements, both on the welfare of the member countries and those excluded, and on the momentum for further liberalization of the open multilateral trading system. This paper reviews the analyses and evidence to date as to these effects, showing that analytically anything can happen and that, to date, there has been insufficient experience to draw conclusions from empirical evidence.

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.13.4.105
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    Article provided by American Economic Association in its journal Journal of Economic Perspectives.

    Volume (Year): 13 (1999)
    Issue (Month): 4 (Fall)
    Pages: 105-124

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    Handle: RePEc:aea:jecper:v:13:y:1999:i:4:p:105-124
    Note: DOI: 10.1257/jep.13.4.105
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    Keywords:

    Find related papers by JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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    1. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1998. "Continental Trading Blocs: Are They Natural or Supernatural?," NBER Chapters,in: The Regionalization of the World Economy, pages 91-120 National Bureau of Economic Research, Inc.
    2. Lawrence H. Summers, 1991. "Regionalism and the world trading system," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 295-301.
    3. Snape, Richard H., 1996. "Trade Discrimination - Yesterday's Problem?," SSE/EFI Working Paper Series in Economics and Finance 100, Stockholm School of Economics.
    4. L. Alan Winters, 1987. "Britain in Europe: a Survey of Quantitative Trade Studies," Journal of Common Market Studies, Wiley Blackwell, vol. 25(4), pages 315-335, 06.
    5. Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-519, September.
    6. Robinson, Sherman & Thierfelder, Karen, 2002. "Trade liberalisation and regional integration: the search for large numbers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), December.
    7. Bagwell, Kyle & Staiger, Robert W, 1998. "Will Preferential Agreements Undermine the Multilateral Trading System?," Economic Journal, Royal Economic Society, vol. 108(449), pages 1162-1182, July.
    8. Paul R. Krugman, 1991. "The move toward free trade zones," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 7-58.
    9. Paul Krugman, 1989. "Is Bilateralism Bad?," NBER Working Papers 2972, National Bureau of Economic Research, Inc.
    10. Ethier, Wilfred J, 1998. "The New Regionalism," Economic Journal, Royal Economic Society, vol. 108(449), pages 1149-1161, July.
    11. Bhagwati, Jagdish & Greenaway, David & Panagariya, Arvind, 1998. "Trading Preferentially: Theory and Policy," Economic Journal, Royal Economic Society, vol. 108(449), pages 1128-1148, July.
    12. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
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