An Ex-Ante Approach to the Profitability of a Customs Union

Brahim Mansouri and Aissam Boudrouz
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Brahim Mansouri: Professor-Doctor of Economics, Faculty of Juridical, Economic and Social Sciences, Cadi Ayyad University, Marrakech, Morocco.
Aissam Boudrouz: PhD Student, Faculty of Juridical, Economic and Social Sciences, Cadi Ayyad University, Marrakech, Morocco.

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 8, 3272-3280

Abstract: This paper proposes analytical and prospective approaches to regional integration in the form of a “customs union†. Based on Jacob Viner’s theory of regional integration, stating that customs unions generate either trade creation or trade diversion effects, we have developed an index that measures the profitability of joining a customs union, from an ex-ante perspective. The derived index aspires to determine whether joining a customs union will produce trade creation or trade diversion effects for a country member. It can then serve as a reliable tool for policymakers who design and implement trade policies.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:8:y:2024:i:8:p:3272-3280

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