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An elementary tariff reform for a free trade area

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  • Martin Richardson

Abstract

In this note I identify a simple Pareto-improving tariff reform for two countries in a free trade area, motivated by the approach in Kemp and Wan (1976).

Suggested Citation

  • Martin Richardson, 2021. "An elementary tariff reform for a free trade area," ANU Working Papers in Economics and Econometrics 2021-680, Australian National University, College of Business and Economics, School of Economics.
    • Handle: RePEc:acb:cbeeco:2021-680
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    File URL: https://cbe.anu.edu.au/researchpapers/econ/wp680.pdf
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    References listed on IDEAS

    as
    1. Martin Richardson, 2017. "On the Interpretation of the Kemp/Wan Theorem," World Scientific Book Chapters, in: Dimensions of Trade Policy, chapter 9, pages 183-193, World Scientific Publishing Co. Pte. Ltd..
    2. Felbermayr, Gabriel & Teti, Feodora & Yalcin, Erdal, 2019. "Rules of origin and the profitability of trade deflection," Journal of International Economics, Elsevier, vol. 121(C).
    3. Turunen-Red, Arja H & Woodland, Alan D, 1991. "Strict Pareto-Improving Multilateral Reforms of Tariffs," Econometrica, Econometric Society, vol. 59(4), pages 1127-1152, July.
    4. Raimondos, Pascalis & Woodland, Alan, 2018. "Reciprocity in trade negotiations and welfare," Journal of International Economics, Elsevier, vol. 111(C), pages 134-142.
    5. Lake, James & Nken, Moïse & Yildiz, Halis Murat, 2020. "Tariff bindings and the dynamic formation of Preferential Trade Agreements," Journal of International Economics, Elsevier, vol. 122(C).
    6. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
    7. Panagariya, Arvind & Krishna, Pravin, 2002. "On necessarily welfare-enhancing free trade areas," Journal of International Economics, Elsevier, vol. 57(2), pages 353-367, August.
    8. James Lake, 2019. "Dynamic formation of preferential trade agreements: The role of flexibility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 132-177, February.
    9. Alan D. Woodland (ed.), 2002. "Economic Theory and International Trade," Books, Edward Elgar Publishing, number 1994.
    10. Ornelas, Emanuel, 2008. "Feasible multilateralism and the effects of regionalism," Journal of International Economics, Elsevier, vol. 74(1), pages 202-224, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tariff reform; Free trade area; Pareto improvement;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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