Working Papers Home


2014 Working Papers
2013 Working Papers
2012 Working Papers
2011 Working Papers
2010 Working Papers
2009 Working Papers
2008 Working Papers
2007 Working Papers
2006 Working Papers
2005 Working Papers
2004 Working Papers
2003 Working Papers
2002 Working Papers
2001 Working Papers
2000 Working Papers


Search All Papers


JEL Classification


Past Working Papers (Prior to 2000)


Office of Research
Home Page



Information on
Submitting a Paper



 
 
"An Enhancement of Modern Free Trade Area Theory"

Earl L. Grinols and Peri Silva

 

First Author :

Earl L. Grinols
Economics
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

grinols@staff.uiuc.edu

http://www.business.uiuc.edu/faculty/grinols.html


Second Author :

Peri Silva
Economics
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

pasilva@uiuc.edu

 
 
Abstract :
 
This paper constructs a simplified framework for analyzing the welfare effects of free trade areas. We provide an alternative proof of the Panagariya-Krishna proposition on free trade areas, shortening the proof, covering a broader set of circumstances, and showing that the necessary income flows to guarantee welfare gains to all members are paid out of each country's own tariff revenues. The paper provides a close parallel to the important Kemp and Wan custom union theory.
 
 
JEL Classification : D6 , F15
 
 
Keywords :
 
Free trade areas, rules of origin, welfare analysis
 
 
Manuscript Received : 2003
Manuscript Published : 2003
 
 
This abstract has been viewed 2435 times.