Trade Policy and Illegal Immigration
We use a version of the Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. First, we consider the small union case and derive the Nash tariff equilibrium for two potential members of a Preferential Trade Agreement (PTA). We analyze conditions under which a movement from the Nash equilibrium to complete intra-bloc tariff elimination (FTA) is likely to be welfare augmenting. The paper also considers how reduction of the external tariff may impact the Nash equilibrium tariffs of the potential bloc members. The analysis is extended to the large union case to consider the conditions under which terms of trade of bloc members improve with respect to the non-member nation(s).
|Date of creation:||2005|
|Contact details of provider:|| Postal: P.O. Box 6025, Morgantown, WV 26506-6025|
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Web page: http://business.wvu.edu/graduate-degrees/phd-economics
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- Bond, Eric W. & Syropoulos, Constantinos & Winters, L. Alan, 2001.
"Deepening of regional integration and multilateral trade agreements,"
Journal of International Economics,
Elsevier, vol. 53(2), pages 335-361, April.
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- Pia M. Orrenius, 2001. "Illegal immigration and enforcement along the U.S.-Mexico border; an overview," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q I, pages 2-11.
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- Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier.
- Bond, Eric W. & Chen, Tain-Jy, 1987. "The welfare effects of illegal immigration," Journal of International Economics, Elsevier, vol. 23(3-4), pages 315-328, November.
- Subhayu Bandyopadhyay, 2006. "Illegal Immigration and Second-best Import Tariffs," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 93-103, 02.
- Panagariya, Arvind & Krishna, Pravin, 2002. "On necessarily welfare-enhancing free trade areas," Journal of International Economics, Elsevier, vol. 57(2), pages 353-367, August.
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