Skip to main content

Industrial targeting in free trade areas with policy independence

Buy Article:

$51.00 plus tax (Refund Policy)

Abstract:

Abstract. 

We investigate the limits of a mechanism for free trade area (FTA) formation that simultaneously satisfies internal industrialization targets. For arbitrary targets, we find necessary and sufficient conditions that guarantee that the mechanism is efficient for member countries individually, even if other members do not implement the efficient policy. When the objective is conservative – designed to protect the level of industrialization previously achieved by the target industry – member countries are guaranteed gains from the efficient policy and their FTA participation. The analysis covers cases with transportation costs and explains why minimally restrictive rules of origin support efficiency and policy independence.

Keywords: D60; F13; F15

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1540-5982.2008.00486.x

Affiliations: 1: Department of Economics, Baylor University 2: Department of Economics, University of North Dakota

Publication date: August 1, 2008

bpl/caje/2008/00000041/00000003/art00005
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more