Regional integration and lobbying for tariffs against nonmembers
Regional integration and lobbying for tariffs against nonmembers
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DOI:
10.1111/1468-2354.00032
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发表时间:
1999-08-01
影响因子:
1.5
通讯作者:
Olarreaga, M
中科院分区:
文献类型:
--
作者:
Cadot, O;de Melo, J;Olarreaga, M
We study the impact of regional trading arrangements (RIAs) on tariff policy toward nonmembers in a three-good, three-country political economy model. Comparing free-trade areas (FTAs) with and without rules of origin and customs unions (CUs) with varying degrees of economic and political integration, we show how increasingly deep integration can lead to rising protection against nonmember imports. Other differences between FTAs and CUs, like the extent of free-riding in a CU and any component of a CU's tariff designed to improve the members' terms of trade, are not explicitly accounted for. Nevertheless, the results suggest that FTAs are likely to welfare dominate CUs.