Incentives to Form Customs Unions and Quotas

Yeong-Her Yeh

Review of International Economics, 1998, vol. 6, issue 4, 695-97

Abstract: This paper extends the well-known Kemp-Wang proposition regarding customs unions and tariffs to the case of import quotas. It is shown that a customs union in the presence of import quotas will leave each country, whether a member of the customs union or not, not worse off than before the formation of the customs union. The partial-equilibrium approach is used in this study. Copyright 1998 by Blackwell Publishing Ltd.

Date: 1998
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