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- W1972627397 abstract "This paper analyzes the impact of various configurations of regional economic integration on members countries as well as on outside countries under realistic assumptions. That is we consider constant external tariffs as required by Article XXIV of the GATT and the asymmetric formation of the FTA where some countries form a FTA while others are left behind. Extending the Krugman framework for the analysis of regional integration we decompose the impact of regional integration into a few subeffects each of which has a clear economic implication. Further we show that economic integration definitely worsens the welfare of the countries that are left behind even if the external tariffs of the FTA remain unraised. Finally we calibrate the model to obtain insights into motivations for countries to form regional integration. The simulation results clarify the incentive structure of major participants e.g. the United States Japan and the smaller Asian countries who face various configurations of regional integration such as EU NAFTA EAEC and APEC. The simulation suggests that the APEC may be a politically feasible configuration in the world because it substantially increases the welfare level of major participants. Moreover world-wide free trade may be difficult to achieve because completely free trade implies a reduction of the welfare level of the major players from the levels that are achieved under various configurations of the FTA. (authors)" @default.
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- W1972627397 date "1999-11-01" @default.
- W1972627397 modified "2023-09-23" @default.
- W1972627397 title "Regional Economic Integration and Article XXIV of the GATT" @default.
- W1972627397 doi "https://doi.org/10.1111/1467-9396.00181" @default.
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