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A New Look at Economic Integration

In: THE FLOATING WORLD Issues in International Trade Theory

Author

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  • Wilfred J Ethier
  • Henrik Horn

Abstract

The literature on customs unions theory is gargantuan. Nevertheless it strikes us as inadequate, both in the theoretical cases it addresses and in the actual circumstances of the world economy to which it is commonly thought relevant. This paper aims to spell out the details of this inadequacy and to indicate some lines along which the theory ought to be developedSection 1 very briefly describes basic ideas in contemporary customs union theofy, and Section 2 then discusses at some length necessary extensions. Two general propositions are advanced in the next section, and proved in Section 4. Section 5 develops a specific model incorporating the new features, and Section 6 then exhibits aspects of this model via some special comparative-statics exercises.

Suggested Citation

  • Wilfred J Ethier & Henrik Horn, 2014. "A New Look at Economic Integration," World Scientific Book Chapters, in: THE FLOATING WORLD Issues in International Trade Theory, chapter 9, pages 167-189, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814590327_0009
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