This paper contributes to analysis of the extent to which multilateral trading agreements reached under GATT can liberalize the world economy. Its main conclusion is that free trade is not sustainable if production is fixed exogenously and utility is non-transferable. If production is fixed and...

This study examines the development of trade between ASEAN and New Zealand. Indices of trade intensity and trade potential are used to analyse the intensity of existing trade for the period 1980~2010 and trade potential going forward. This is the first use of the trade potential method to assess...

This paper analyses the basic labour market inter-dependencies among coun - tries with intra-industrial trade and imper fectly competitive product and labour markets. The paper stresses two major channels through which increased integration may affect product markets and therefore in turn labour...

This paper corrects a shortcoming in the literature on computable general equilibrium models and imperfect competition with free entry and increasing returns to scale. The trade integration simulations applied to the US suggest that the shortcoming is quantitatively insignificant if key...

Intra-industry trade is driven by product differentiation and economies of scale. Business services are important for developing and marketing new varieties. Yet, their role for product differentiation has attracted little attention in the literature. This paper contributes to filling this gap...

This paper examines the effects on welfare and on patterns of trade of a reduction in costs of trading, such as might be the result of newly formed networks among residents of different countries with common culture or other ties. It argues that such a reduction in trade costs, even when it...

This paper examines the impact of market integration in the presence of a labor union. Effects on wages, employment, product price, firm profits, and union rents are analyzed. Both the theoretical model as well as numerical sim - ulations show the importance of factors such as the product demand...

The influence of data aggregation on applied trade theory may not be generally appreciated. Aggregation can have a direct impact on the direction of trade, factor intensity, factor abundance, factor substitution, product differentiation, and intra-industry trade. This paper develops some...

Tariff literature on third-degree price discrimination remains only lightly explored. The purpose of the paper is to investigate whether there exist optimum tariffs in the presence of different demand elasticities. We explore (i) the case of optimum uniform ad valorem tariff, and (ii) the case...

The paper studies the effects of regional integration on the incentives of mem - bers and non-members to undertake multilateral trade liberalization. Using a three- country political economy model with imperfect competion, it shows how regionalism can undermine support for multilateralism....