IDEAS home Printed from
   My bibliography  Save this article

Macroeconomics of Regional Integration: Withdrawal from a Customs Union


  • M. El-Agraa, Ali

    () (Fukuoka University)

  • J. Jones, Anthony

    (University of Leeds)


This paper has two unique features: it deals with withdrawal from a customs union, which is a neglected aspect of international economic integration, and does so within a macroeconomic framework rather than standard general-partial equilibrium analysis. Withdrawal was in the British Labour Party’s 1983 election manifesto; Greenland actually withdrew from the European Communities in 1985; presently an influential section of the British Conservative Party and others wish to do so for the UK; and the European Union’s Reform Treaty for the first time allows for it. Moreover, given the recent proliferation in preferential trading arrangements, with overlap in membership, withdrawal is on the horizon. A simple, almost naïve, macroeconomic framework is tailored for the purpose not only because of its direct policy relevance, but also because it adds variety to relevant discussion. The conclusion reached is that the model does not negate the general conclusion of the orthodox analysis: in the presence of constraints on the use of domestic and exchange-rate policies to achieve full employment, the model points to the general potential superiority of continued customs union membership over a policy of withdrawal.

Suggested Citation

  • M. El-Agraa, Ali & J. Jones, Anthony, 2008. "Macroeconomics of Regional Integration: Withdrawal from a Customs Union," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 75-90.
  • Handle: RePEc:ris:integr:0426

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    International Economic Integration; Macroeconomic Modelling; Withdrawal from a Customs Union;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration


    Access and download statistics


    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:ris:integr:0426. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.