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Towards a Common Market: Factor Mobility in a Customs Union

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  • Ian Wooton

Abstract

This paper examines whether the member countries of a customs union would gain from moving towards the next stage of economi c integration, the common market. When the set of common external tar iffs is not chosen optimally, increased factor mobility may reduce th e welfare of the customs union. However, common market formation is t he best policy when a customs union of any size sets its tariffs to t he appropriate levels.

Suggested Citation

  • Ian Wooton, 1988. "Towards a Common Market: Factor Mobility in a Customs Union," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 525-538, August.
  • Handle: RePEc:cje:issued:v:21:y:1988:i:3:p:525-38
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    References listed on IDEAS

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    1. Robin Boadway & Neil Bruce & Jack Mintz, 1984. "Taxation, Inflation, and the Effective Marginal Tax Rate on Capital in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 17(1), pages 62-79, February.
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    Cited by:

    1. Foroutan, Faezeh, 1992. "Regional integration in sub-Saharan Africa : experience and prospects," Policy Research Working Paper Series 992, The World Bank.
    2. de Melo, Jaime & Montenegro, Claudio & Panagariya, Arvind, 1992. "Regional integration, old and new," Policy Research Working Paper Series 985, The World Bank.
    3. Krishna, Pravin & Panagariya, Arvind, 2000. "A unification of second best results in international trade," Journal of International Economics, Elsevier, vol. 52(2), pages 235-257, December.

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