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Necessarily Welfare-Enhancing Customs Unions with Industrialization constraints: A proof of the Cooper-Massell-Johnson-Bhagwati Conjecture

Pravin Krishna; Jagdish N. Bhagwati

Title:
Necessarily Welfare-Enhancing Customs Unions with Industrialization constraints: A proof of the Cooper-Massell-Johnson-Bhagwati Conjecture
Author(s):
Krishna, Pravin
Bhagwati, Jagdish N.
Date:
Type:
Working papers
Department:
Economics
Persistent URL:
Series:
Department of Economics Discussion Papers
Part Number:
694
Publisher:
Department of Economics, Columbia University
Publisher Location:
New York
Abstract:
"The conventional 'static', 'benign government' theory of customs unions was pioneered by Jacob Viner's (1950) pathbreaking work2 . He essentially argued, counterintuitively to those who thought that even preferential tariff cuts would necessarily be welfare-improving, that a subset of countries reducing tariffs on one another to zero would not necessarily be improving their own, or world welfare. In short, such Free Trade Areas or Customs Unions (with common external tariffs) could be trade-diverting and harmful or trade-creating and beneficial."
Subject(s):
Economics
Item views
288
Metadata:
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Suggested Citation:
Pravin Krishna, Jagdish N. Bhagwati, 1994, Necessarily Welfare-Enhancing Customs Unions with Industrialization constraints: A proof of the Cooper-Massell-Johnson-Bhagwati Conjecture, Columbia University Academic Commons, http://hdl.handle.net/10022/AC:P:15586.

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