More (or less) on necessarily welfare-enhancing free trade Areas
Richardson, Martin; Winchester, Niven
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.
Publisher: University of Otago
Series number: 603
Keywords: Kemp-Wan; customs unions; free trade areas. JEL Classification numbers: F13; F15
Research Type: Discussion Paper