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More (or less) on necessarily welfare-enhancing free trade Areas
Working paper   Open access

More (or less) on necessarily welfare-enhancing free trade Areas

Martin Richardson and Niven Winchester
07/2006
Handle:
https://hdl.handle.net/10523/1129

Abstract

Kemp-Wan customs unions free trade areas. JEL Classification numbers: F13 F15 HB Economic Theory
This note considers the extension of the Kemp-Wan theorem on necessarily welfareimproving customs unions to free trade areas. It suggests that the value of this extension is undermined by its very rationale – the greater popularity of free trade areas over customs unions for ‘political’ reasons.
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