FREE TRADE AGREEMENTS AS DYNAMIC FARSIGHTED NETWORKS.

In the presence of multilateral negotiations, are Free Trade Agreements ( FTAs) necessary for, or will they prevent, global free trade? I answer this question using a dynamic farsighted model of network formation among asymmetric countries. Ultimately, FTAs prevent global free trade when there are t...

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Publicado en:Economic Inquiry Vol. 55; no. 1; pp. 31 - 51
Autor principal: Lake, James
Formato: Artículo
Publicado: Wiley-Blackwell Jan2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        au: Lake, James
        affil: Assistant Professor, Department of Economics, Southern Methodist University, Dallas TX, 75275
      su:
        World Trade Organization
        Free trade
        Commercial treaties
        Trade negotiation
        Economic research
      sug:
        subj:
          World Trade Organization
          Research and Development in the Social Sciences and Humanities
          Administration of General Economic Programs
          Free trade
          Commercial treaties
          Trade negotiation
          Economic research
      ab: In the presence of multilateral negotiations, are Free Trade Agreements ( FTAs) necessary for, or will they prevent, global free trade? I answer this question using a dynamic farsighted model of network formation among asymmetric countries. Ultimately, FTAs prevent global free trade when there are two larger countries and one smaller country but FTAs can be necessary for global free trade when there are two smaller countries and one larger country. The model provides insights into the dynamics of recent real-world negotiations and recent results in the literature on the empirical determinants of trade agreements. ( JEL C71, F12, F13)
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    language: English
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