Preferential Trade Agreements and Multilateral Tariff Cooperation
Preferential Trade Agreements and Multilateral Tariff Cooperation
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优惠贸易协定和多边关税合作
DOI:
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发表时间:
2006
期刊:
影响因子:
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通讯作者:
Kamal Saggi
中科院分区:
文献类型:
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作者:
Kamal Saggi
Are preferential trade agreements (PTAs) building or stumbling blocks for multilateral trade liberalization? I address this question in an infinitely repeated tariff game between three countries engaged in intraindustry trade under oligopoly. The central result is that when countries are symmetric, a free trade agreement (FTA) undermines multilateral tariff cooperation by adversely affecting the cooperation incentive of the nonmember whereas a customs union (CU) does so via its effect on the cooperation incentives of members. However, when countries are asymmetric with respect to either market size or cost, there exist circumstances where PTAs facilitate multilateral tariff cooperation.