IDEAS home Printed from https://ideas.repec.org/a/che/chepap/v18y2006i1p29-33.html
   My bibliography  Save this article

A Simulation Experiment of a Customs Union

Author

Listed:
  • Reza Oladi

    (Utah State University)

  • John Gilbert

    (Utah State University)

Abstract

Here a numerical simulation model, implemented in Excel, that can be used to expand student understanding of the theory of customs unions is presented. The model allows examination of core customs union issues including trade creation, trade diversion, and the KempWan theorem. By responding to an experimental assignment that guides them through the simulation, students are able to learn the theory in a hands-on manner. We also attempt to measure the effectiveness of our approach, and find evidence to suggest exposure to simulation improves student outcomes.

Suggested Citation

  • Reza Oladi & John Gilbert, 2006. "A Simulation Experiment of a Customs Union," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 18(1), pages 29-33.
  • Handle: RePEc:che:chepap:v:18:y:2006:i:1:p:29-33
    as

    Download full text from publisher

    File URL: https://www.economicsnetwork.ac.uk/cheer/ch18/oladi.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert Scollay & John P. Gilbert, 2001. "New Regional Trading Arrangements in the Asia Pacific?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa63, October.
    2. John Gilbert, 2005. "A Trade War Simulation/Experiment in Excel," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 17(1), pages 4-8.
    3. Soumaya M. Tohamy & J. Wilson Mixon, 2003. "Lessons from the Specific Factors Model of International Trade," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(2), pages 139-150, January.
    4. Miles Cahill & George Kosicki, 2000. "Exploring Economic Models Using Excel," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 770-792, January.
    5. 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.
    6. Soumaya M. Tohamy, 2004. "Combining Fun and Learning in Principles of Economics Courses," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 16(1), pages 4-9.
    7. J. Wilson Mixon, Jr. & Soumaya Tohamy, 2001. "Using Microsoft Excel in Principles of Economics," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 14(2), pages 4-6.
    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. Innwon Park, 2006. "East Asian Regional Trade Agreements: Do They Promote Global Free Trade?," Pacific Economic Review, Wiley Blackwell, vol. 11(4), pages 547-568, December.
    2. John Gilbert & Onur A. Koska & Reza Oladi, 2022. "Building and Using Nonlinear Excel Simulations: An Application to the Specific Factors Model," Working Papers in Economics 22/08, University of Canterbury, Department of Economics and Finance.
    3. Innwon Park, 2009. "Regional Trade Agreements in East Asia: Will They Be Sustainable?," Asian Economic Journal, East Asian Economic Association, vol. 23(2), pages 169-194, June.
    4. John Gilbert, 2002. "Assessing Regional Trading Arrangements In The Asia-Pacific," UNCTAD Blue Series Papers 15, United Nations Conference on Trade and Development.
    5. Peter J. Lloyd & Donald Maclaren, 2004. "Gains and Losses from Regional Trading Agreements: A Survey," The Economic Record, The Economic Society of Australia, vol. 80(251), pages 445-467, December.
    6. Plummer, Michael G., 2006. "Toward Win-Win Regionalism in Asia: Issues and Challenges in Forming Efficient Trade Agreements," Working Papers on Regional Economic Integration 5, Asian Development Bank.
    7. John Gilbert & Onur A. Koska & Reza Oladi, 2023. "Building and using nonlinear simulations in Excel with an application to the specific factors model," Southern Economic Journal, John Wiley & Sons, vol. 89(4), pages 1242-1265, April.
    8. Jong‐Wha Lee & Innwon Park & Kwanho Shin, 2008. "Proliferating Regional Trade Arrangements: Why and Whither?," The World Economy, Wiley Blackwell, vol. 31(12), pages 1525-1557, December.
    9. Gilbert John & Oladi Reza, 2007. "Simulating Tariffs vs. Quotas with Domestic Monopoly," Journal of Industrial Organization Education, De Gruyter, vol. 2(1), pages 1-11, October.
    10. Siebert, Horst, 2005. "TAFTA - a dead horse or an attractive open club?," Kiel Working Papers 1240, Kiel Institute for the World Economy (IfW Kiel).
    11. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    12. ANDO Mitsuyo, 2009. "Impacts of FTAs in East Asia: CGE Simulation Analysis," Discussion papers 09037, Research Institute of Economy, Trade and Industry (RIETI).
    13. Jaume Sempere, 2022. "On potential Pareto gains from free trade areas formation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(6), pages 1502-1518, December.
    14. Pachara Lochindaratn, 2007. "Market Size, Market Structure, and Welfare Improving Regional Economic Integration: The Computable General Equilibrium Modelling Approach," EcoMod2007 23900053, EcoMod.
    15. Kemp, Murray, 2008. "Non-competing factor groups and the normative propositions of trade theory," International Review of Economics & Finance, Elsevier, vol. 17(3), pages 388-390.
    16. Pravin Krishna, 1998. "Regionalism and Multilateralism: A Political Economy Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 227-251.
    17. Lucian Cernat, 2001. "ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?," International Trade 0109001, University Library of Munich, Germany.
    18. Gumilang, Howard & Mukhopadhyay, Kakali & Thomassin, Paul J., 2011. "Economic and environmental impacts of trade liberalization: The case of Indonesia," Economic Modelling, Elsevier, vol. 28(3), pages 1030-1041, May.
    19. Warwick McKibbin & Jong-Wha Lee & Inkyo Cheong, 2004. "A dynamic analysis of the Korea-Japan free trade area: simulations with the G-cubed Asia-Pacific model," International Economic Journal, Taylor & Francis Journals, vol. 18(1), pages 3-32.
    20. 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.

    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:che:chepap:v:18:y:2006:i:1:p:29-33. 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: Martin Poulter (email available below). General contact details of provider: https://www.economicsnetwork.ac.uk/cheer .

    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.