A THEORY OF ECONOMIC DISINTEGRATION

• 成果类型: Article
• 署名作者: Janeba, Eckhard; Schulz, Karl
• 署名单位: University of Mannheim; University of St Gallen
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12665
• 发表日期: 2024
• 页码: 353-392
• 关键词: Tax competition; Trade agreements; market-size; Brexit; IMPACT; LIBERALIZATION; HARMONIZATION; taxation

摘要

We study the impact of unilateral economic disintegration, such as Brexit, on national and international policies. We introduce firm mobility and business-tax policies into a general-equilibrium trade model and analyze the effects of disintegration on tax policies of asymmetric countries. Although the disintegrating country taxes less, business taxes converge in the remaining economic area. We highlight important differences with existing two-country models. Moreover, we predict a realignment of trade policies with a deeper integration inside the union and lower tariffs worldwide. The leaving country's endogenous integration response with other countries may fully compensate for the disintegration-induced welfare losses.