Work

Externalities and Free Trade Agreements

Year: 2000

Type: article

Abstract: This paper studies the consequences of a private or depletable externality on free trade agreements in a general equilibrium framework. lt is shown that there always exists a stable system of free trade spaces in the world economy. This stable system can result in either non-cooperation, partial cooperation, or total cooperation among countries of different types. The non-cooperation system is Pareto dominated by any other cooperating system. By enforcing a tax policy, a GATT arbitrator is able to implement Pareto superior stable systems in which countries of different type are cooperating.

Source: Annales d Économie et de Statistique

DOI: 10.2307/20076242

Authors: Grafe, Mauleon

Language: French

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2130857111

FWCI:

Cites: 27

Cited by: 7

Related to: 10