Hacker, R. Scott
[VerfasserIn]
;
Hussain, Qaizar
[Sonstige Person, Familie und Körperschaft];
Hacker, R. Scott
[Sonstige Person, Familie und Körperschaft]
Trading Blocs and Welfare
: How Trading Bloc Members Are Affected by New Entrants
Beschreibung:
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