Deardorff, Alan V. - In: Margin: The Journal of Applied Economic Research 5 (2011) 1, pp. 117-138
This paper uses a partial equilibrium model of two small countries, within a large world economy, implementing reciprocal tariff cuts on each other’s exports in a regional trade agreement (RTA) and compares the effects with unilateral most favoured nation (MFN) tariff cuts. The reciprocal...