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"Industrial Targeting and Free Trade Areas"
Earl L. Grinols and Peri Silva
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First Author :
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Second Author :
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| Abstract : |
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In this paper we construct a mechanism where any group of nations can form a welfare enhancing free trade area and, at the same time, satisfy their industrialization targets efficiently. The mechanism does not rely on cross-country transfers and, therefore, allows each member country to reap welfare gains from the formation of the free trade area. Since industrialization targets are satisfied and neither tariff harmonization nor cross-country transfers are necessary, the mechanism presented in this paper is politically palatable.
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| JEL Classification :
D60
, E13
, F15
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| Keywords : |
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| Free trade areas, industrialization targets, rules of origin, welfare analysis |
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| Manuscript Received :
2003
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| Manuscript Published :
2003
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This abstract has been viewed 2309 times.
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