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Common markets and trade liberalization

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  • Costas Hadjiyiannis

Abstract

The GATT Rounds show that trade liberalization is essentially a cooperative non-stationary dynamic process. Therefore, the impact of Regionalism on trade liberalization possibly changes over time. I adapt the trade liberalization model of Devereux (1997) to examine how this impact varies. Common markets lead to a one-time shock in immediate tariffs, as well as to a change in their rate of decline. I find that common markets that happen late in the trade liberalization process are more likely to lead to a decline in immediate tariffs. Common markets also increase the rate of decline of tariffs after their formation.

Suggested Citation

  • Costas Hadjiyiannis, 2004. "Common markets and trade liberalization," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 484-508, May.
    • Handle: RePEc:cje:issued:v:37:y:2004:i:2:p:484-508
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    Cited by:

    1. Agramont, Daniel Agramont & Aliaga Lordemann, Javier, 2010. "Potential gains for Bolivia of the subscription of an association Agreement with the European Union," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 14, pages 127-161.

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    More about this item

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration

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