Tariff revenue competition in a free trade area
Tariff revenue competition in a free trade area
复制标题
自贸区关税收入竞争
DOI:
10.1016/0014-2921(94)00104-8
复制
发表时间:
1995
影响因子:
2.8
通讯作者:
Martin Richardson
中科院分区:
文献类型:
--
作者:
Martin Richardson
This note argues that important consequences for the analysis of free trade areas (FTAs) follow from the observation that, with no transport costs, producer prices must be equalised across member countries of a FTA, even if external tariffs differ. In particular, the well-known tariff externality of a FTA is exacerbated by internal trade deflection and competition for external tariff revenues. Consequently, a FTA will involve lower external tariffs than might otherwise be expected. We illustrate an extreme case of a FTA between identical partners wherein equilibrium, if it exists at all, is one of zero external tariffs.