Politics of free trade areas: tariffs versus quotas

• 成果类型: Article; Proceedings Paper
• 署名作者: Panagariya, A; Duttagupta, R
• 署名单位: University System of Maryland; University of Maryland College Park; International Monetary Fund
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(01)00173-8
• 发表日期: 2002
• 页码: 413-427
• 关键词: FTA; quota; political economy; MFA; NAFTA

摘要

In this paper we compare and contrast the political viability of bilateral Free Trade Area (FTA) Agreements in the presence of tariffs and quotas. Assuming that the government maximizes a weighted sum of welfare and producer profits, we show that the political viability of FTAs varies according to whether trade restrictions take the form of tariffs or quotas. A key result is that whereas an FTA is unambiguously rejected by one of the countries under a tariff, it may be endorsed by both trading partners under a voluntary export quota or import quota that provides equal protection as the tariff. (C) 2002 Elsevier Science B.V. All rights reserved.