Panagariya, Arvind; Gupta, Rupa Dutta - EconWPA - 2003
preferential trading under the rules of origin. Combining this analysis with the Grossman-Helpman political-economy model, we … demonstrate that the rules of origin can improve the political viability of FTAs. Two interesting outcomes are derived. First, an … FTA that lowered joint welfare of the union and was voted down in the absence of the rules of origin may become feasible …