search query: @author Panagariya, A. / total: 20
reference: 2 / 20
Author: | Panagariya, A. Duttagupta, R. |
Title: | Politics of free trade areas: tariffs versus quotas |
Journal: | Journal of International Economics
2002 : DEC, VOL. 58:2, p. 413-427 |
Index terms: | Trade policy Political economy Free trade Trade agreements |
Language: | eng |
Abstract: | The authors compare and contrast the political viability of bilateral Free Trade Area (FTA) Agreements in the presence of tariffs and quotas. Assuming that the government maximizes a weighted sum of welfare and producer profits, they show that the political viability of FTAs varies according to whether trade restrictions take the form of tariffs or quotas. A key result is that whereas an FTA is unambiguously rejected by one of the countries under a tariff, it may be endorsed by both trading partners under a voluntary export quota or import quota that provides equal protection as the tariff. |
SCIMA