IDEAS home Printed from https://ideas.repec.org/h/eme/fegzzz/s1574-8715(08)05010-0.html
   My bibliography  Save this book chapter

Chapter 10 Pareto-Improving Trading Clubs without Income Transfers

In: Globalization and Emerging Issues in Trade Theory and Policy

Author

Listed:
  • Kazumichi Iwasa
  • Raymond Riezman
  • Koji Shimomura

Abstract

Purpose – We ask how far the Kemp–Wan Pareto-improving result can hold without inter-country transfers. Methodology/approach – Assuming that the standard revenue and expenditure functions exist, we consider tariff adjustments for some group of countries such that they makes member countries better off without affecting non-member countries (a la Kemp–Wan). Findings – Any group of countries can engage in a Pareto-improving non-discriminatory tariff reform without income transfers, if (i) there are more than two tradable goods and (ii) the initial tariff vectors of the member countries satisfy the non-proportionality condition. We then show that if these two conditions hold then countries can form a Pareto-optimal customs union. Depending on initial conditions, transfers may be necessary for the customs union to be Pareto-improving. Originality/value of paper – The Pareto-improving result of this chapter is based on tariff reform only.

Suggested Citation

  • Kazumichi Iwasa & Raymond Riezman & Koji Shimomura, 2008. "Chapter 10 Pareto-Improving Trading Clubs without Income Transfers," Frontiers of Economics and Globalization, in: Globalization and Emerging Issues in Trade Theory and Policy, pages 139-162, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-8715(08)05010-0
    DOI: 10.1016/S1574-8715(08)05010-0
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1016/S1574-8715(08)05010-0/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1016/S1574-8715(08)05010-0/full/epub?utm_source=repec&utm_medium=feed&utm_campaign=repec&title=10.1016/S1574-8715(08)05010-0
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1016/S1574-8715(08)05010-0/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1016/S1574-8715(08)05010-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Customs unions; Research paper;

    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:eme:fegzzz:s1574-8715(08)05010-0. 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.

    We have no bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    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.