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

Winchester, Niven; Richardson, Martin

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

Richardson, Martin; Winchester, Niven

Cite this item: Richardson, M., & Winchester, N. (2006). More (or less) on necessarily welfare-enhancing free trade Areas (Economics Discussion Papers Series No. 603). University of Otago. Retrieved from http://hdl.handle.net/10523/1129

Permanent link to OUR Archive version: http://hdl.handle.net/10523/1129

Date: 2006-07

Publisher: University of Otago

Pages: 26

Series: Economics Discussion Papers Series

Series number: 603

Keywords: Kemp-Wan; customs unions; free trade areas. JEL Classification numbers: F13; F15

Research Type: Discussion Paper

Abstract:

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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