Preferential Trade Liberalization: The Traditional Theory and New Developments
Top Cited Papers
- 1 June 2000
- journal article
- Published by American Economic Association in Journal of Economic Literature
- Vol. 38 (2) , 287-331
- https://doi.org/10.1257/jel.38.2.287
Abstract
This paper begins by systematically developing the “static” theory of preferential trade areas (PTAs) and showing that neither a large volume of initial intra-union trade nor geographical proximity can serve as a guide to welfare enhancing PTAs. The paper then discusses the modern literature addressing welfare effects of simultaneous division of the world into many PTAs, the impact of the decision to form a PTA on external tariffs and the “dynamic” time-path question of whether PTAs are building blocks or stumbling blocks towards multilateral freeing of trade. A final section discusses key theoretical considerations in the empirical evaluation of PTAs.Keywords
This publication has 33 references indexed in Scilit:
- Regional Integration and Lobbying for Tariffs Against NonmembersInternational Economic Review, 1999
- The Regionalism Debate: An OverviewThe World Economy, 1999
- Regionalism and Multilateralism: A Political Economy ApproachThe Quarterly Journal of Economics, 1998
- The Free Trade Area of the Americas: Good for Latin America?The World Economy, 1996
- WHY A FREE TRADE AREA? THE TARIFF ALSO RISES*Economics & Politics, 1994
- Welfare Effects in Customs UnionsThe Economic Journal, 1981
- Foreign Ownership and the Theory of Trade and WelfareJournal of Political Economy, 1981
- Preferential Trading Theory: The n Commodity CaseJournal of Political Economy, 1979
- Economies of Scale and Customs Union TheoryJournal of Political Economy, 1972
- Tariff Preferences and the Terms of TradeThe Manchester School, 1964