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Paradoxes in integration theory

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  • Carsten Kowalczyk

Abstract

This paper presents a formal analysis of how global welfare is affected by changing tariff and subsidy rates. The discussion stresses three types of reform whereby, surprisingly, trade liberalization has the potential to reduce world welfare: a multilateral equi-proportionate reduction of tariffs and subsidies; a reduction of a tariff or subsidy rate which is not extreme; and the formation of a customs union. Copyright Kluwer Academic Publishers 1992

Suggested Citation

  • Carsten Kowalczyk, 1992. "Paradoxes in integration theory," Open Economies Review, Springer, vol. 3(1), pages 51-59, February.
    • Handle: RePEc:kap:openec:v:3:y:1992:i:1:p:51-59
    DOI: 10.1007/BF01886181
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    References listed on IDEAS

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    1. Kowalczyk, Carsten, 1989. "Trade Negotiations and World Welfare," American Economic Review, American Economic Association, vol. 79(3), pages 552-559, June.
    2. Fukushima, Takashi & Kim, Namdoo, 1989. "Welfare improving tariff changes : A case of many goods and countries," Journal of International Economics, Elsevier, vol. 26(3-4), pages 383-388, May.
    3. Hatta, Tatsuo & Fukushima, Takashi, 1979. "The welfare effect of tariff rate reductions in a many country world," Journal of International Economics, Elsevier, vol. 9(4), pages 503-511, November.
    4. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    5. Jaroslav Vanek, 1964. "Unilateral Trade Liberalization and Global World Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 78(1), pages 139-147.
    6. Carsten Kowalczyk, 1990. "Welfare and Customs Unions," NBER Working Papers 3476, National Bureau of Economic Research, Inc.
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    Cited by:

    1. ABE Kazutomo, 2007. "Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach," Discussion papers 07053, Research Institute of Economy, Trade and Industry (RIETI).
    2. Dell'Aquila, Crescenzo & Sarker, Rakhal & Meilke, Karl D., 1999. "Regionalism And Trade In Agrifood Products," Working Papers 14591, International Agricultural Trade Research Consortium.
    3. Alan Deardorf, 2005. "Gains from Trade and Fragmentation," Working Papers 543, Research Seminar in International Economics, University of Michigan.

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