PREFERENTIAL TRADE AGREEMENTS HARM THIRD COUNTRIES

• 成果类型: Article
• 署名作者: Mossay, Pascal; Tabuchi, Takatoshi
• 署名单位: University of Reading; University of London; University College London; University of Tokyo
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12159
• 发表日期: 2015
• 页码: 1964-1985
• 关键词: model

摘要

We study market liberalisation under imperfect competition in the presence of price effects. For this purpose, we build a three-country model of international trade under monopolistic competition. The neighbouring effect translates how the size effect propagates across countries. When a country increases in size, its relative wage increases, as well as that in a small and nearby country, whereas that in a large and distant country falls. We also show that a preferential trade agreement increases the relative wage, the welfare and the terms of trade in the partner countries, where the integration effect dominates, while lowering those in the third country.