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On 'CU can dominate UTR'


  • Ali El-Agraa
  • Anthony Jones


For a decade and a half, Cooper and Massell's (1965) conclusion that a policy of unilateral tariff reduction (UTR) is superior to the formation of a customs union (CU) remained unchallenged. However Wonnacott and Wonnacott (1981) using a more realistic model, claimed to show that UTR need not dominate a CU. Here, we point out that the Wonnacott and Wonnacott model is incomplete since their CU does not have a common external tariff, and demonstrate that the incorporation of such a tariff in their analysis restores the validity of the Cooper and Massell proposition.

Suggested Citation

  • Ali El-Agraa & Anthony Jones, 2000. "On 'CU can dominate UTR'," Applied Economics Letters, Taylor & Francis Journals, vol. 7(5), pages 301-304.
  • Handle: RePEc:taf:apeclt:v:7:y:2000:i:5:p:301-304
    DOI: 10.1080/135048500351438

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    Cited by:

    1. Ali El-Agraa, 2002. "The UTR versus CU Formation Analysis and Article XXIV," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 621-624.

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