| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP1337
|
| DP1337 Exchange Rate Dynamics and Financial Market Integration |
| Alan Sutherland
|
| 发表日期 | 1996-01-31
|
| 出版年 | 1996
|
| 语种 | 英语
|
| 摘要 | We consider a simple three-country, multi-commodity trade model in which two custom union members that have successfully coordinated their external tariff policies are in the process of deepening the integration of their internal markets through the removal of tariffs on intra-union trade. Union and non-union countries cannot sign binding trade agreements. Owing to repeated interactions, however, they can sustain cooperative outcomes with the use of history-dependent strategies. The goal of this paper is to examine how the deepening of integration affects the set of incentive-compatible tariff agreements these parties can support. We derive conditions under which Kemp-Wan (1976) adjustments in the external tariffs of union members are sustainable and we use these adjustments as a frame of reference to evaluate the actual tariff-setting incentives of trading partners. Our analysis reveals that the deepening of integration may enlarge the set of sustainable tariff agreements with the outside country, and that this possibility crucially depends on the degree of substitutability in consumption. We also investigate the effects of integration on sustainable levels of welfare and extend our analysis to consider the effects of political economy factors. |
| 主题 | International Trade and Regional Economics
|
| 关键词 | Europe '1992'
Kemp-wan tariff adjustments
Regional integration
Tariff negotiations
|
| URL | https://cepr.org/publications/dp1337
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/530469
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推荐引用方式
GB/T 7714 |
Alan Sutherland. DP1337 Exchange Rate Dynamics and Financial Market Integration. 1996.
|
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