ENDOGENOUS PROTECTION AND TRADE DIVERSION

成果类型:
Article
署名作者:
RICHARDSON, M
刊物名称:
JOURNAL OF INTERNATIONAL ECONOMICS
ISSN/ISSBN:
0022-1996
DOI:
10.1016/0022-1996(93)90052-Y
发表日期:
1993
页码:
309-324
关键词:
摘要:
Traditional positive analysis of preferential trading areas has focused on the trade-offs between (beneficial) trade creation and (potentially harmful) trade diversion. We consider the latter phenomenon in the formation of a free-trade area (FTA) between countries where tariffs against non-members are set endogenously. We show that such tariffs will fall consequent to the formation of FTAs and trade diversion is likely to become trade creation. This is illustrated in a model in which tariffs are levied to maximize a political support function. We conclude with some comments on the generality of this result and directions for future research.