Trading Blocs and Welfare : How Trading Bloc Members Are Affected by New Entrants /

This paper uses the three-country duopoly model to examine the effects of lowered trade barriers when a new entrant joins a trading bloc. There are two firms-a small-country firm and a large-country firm within the bloc-and three markets-two within and one (new entrant's) outside the bloc. The...

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Bibliografische gegevens
Hoofdauteur: Hacker, R.
Andere auteurs: Hussain, Qaizar
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 1998.
Reeks:IMF Working Papers; Working Paper ; No. 1998/084
Online toegang:Full text available on IMF
Omschrijving
Samenvatting:This paper uses the three-country duopoly model to examine the effects of lowered trade barriers when a new entrant joins a trading bloc. There are two firms-a small-country firm and a large-country firm within the bloc-and three markets-two within and one (new entrant's) outside the bloc. The analysis generally shows greater gains for the small-country than for the large-country firm. The small-country firm will export more to the external country than the large-country firm. But if tariffs decline, the export share of the large-country firm will increase relative to the small-country firm's, though profits will improve more for the latter.
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Fysieke beschrijving:1 online resource (25 pages)
Formaat:Mode of access: Internet
ISSN:1018-5941
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