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| Author: | Cadot, O. |
| Title: | Can bilateralism ease the pains of multilateral trade liberalization? |
| Journal: | European Economic Review
2001 : JAN, VOL. 45:1, p. 27-44 |
| Index terms: | FREE TRADE POLITICAL ECONOMY BILATERAL TRADE |
| Language: | eng |
| Abstract: | Using the influence-driven approach to endogenous trade-policy determination, the authors show how a free- trade agreement (FTA) with rule of origin can work as a device to compensate losers from trade liberalization. The FTA constructed in this paper is characterised by external tariff structures that are negatively correlated across member countries, ensuring efficiency gains and, through reduced average protection, compatibility with the multilateral trading system's requirements. |
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