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Spillover Effects Of Economic Integration In A Three‐Country Model

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  • JOTA ISHIKAWA
  • HIROSHI MUKUNOKI

Abstract

Using a simple monopoly model, we examine the effects of economic integration. We show that the number of markets and the shapes of marginal revenue curves, are crucial in evaluating economic integration when the marginal cost is not constant. The effects of tariff reductions in a three‐country model contrast with those found in a two‐country model. Effects also depend on which trade policy the non‐member country adopts. When both importing countries simultaneously lower their tariffs, the Metzler paradox may arise.

Suggested Citation

  • Jota Ishikawa & Hiroshi Mukunoki, 2008. "Spillover Effects Of Economic Integration In A Three‐Country Model," The Japanese Economic Review, Japanese Economic Association, vol. 59(2), pages 211-227, June.
  • Handle: RePEc:bla:jecrev:v:59:y:2008:i:2:p:211-227
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    File URL: https://doi.org/10.1111/j.1468-5876.2008.00407.x
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    References listed on IDEAS

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    1. Ishikawa, Jota, 2000. "From Segmented Markets to Integrated Markets: An Analysis of Economic Integration and Antidumping Law," Discussion Papers 2000-01, Graduate School of Economics, Hitotsubashi University.
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    Cited by:

    1. Kenji Fujiwara, 2014. "Tax Principles and Coordination of Trade and Domestic Policies Under Imperfect Competition," Australian Economic Papers, Wiley Blackwell, vol. 53(1-2), pages 29-40, June.
    2. Kenji Fujiwara & Ryoma Kitamura, 2014. "A trade and domestic tax reform in imperfectly competitive markets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(6), pages 785-795, September.
    3. Kenji Fujiwara, 2013. "A Win–Win–Win Tariff–Tax Reform under Imperfect Competition," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 857-867, November.
    4. Fujiwara, Kenji, 2014. "Pareto-improving tariff-tax reforms under imperfect competition," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 12-20.

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