An Enhancement of Modern Free Trade Area Theory

Earl L. Grinols and Peri Silva ()
Additional contact information
Earl L. Grinols: U of Illinois at Urbana-Champaign

Working Papers from University of Illinois at Urbana-Champaign, College of Business

Abstract: This paper constructs a simplified framework for analyzing the welfare effects of free trade areas. We provide an alternative proof of the Panagariya-Krishna proposition on free trade areas, shortening the proof, covering a broader set of circumstances, and showing that the necessary income flows to guarantee welfare gains to all members are paid out of each country's own tariff revenues. The paper provides a close parallel to the important Kemp and Wan custom union theory.

JEL-codes: D60 F15 (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: An enhancement of modern free trade area theory (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:illbus:03-0104

Access Statistics for this paper

More papers in Working Papers from University of Illinois at Urbana-Champaign, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by ().