Publication:
Regional Integration as Diplomacy

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creativeworkseries.issn1564-698X
dc.contributor.authorSchiff, Maurice
dc.contributor.authorWinters, L. Alan
dc.date.accessioned2013-12-20T20:29:13Z
dc.date.available2013-12-20T20:29:13Z
dc.date.issued1998-05-01
dc.description.abstractRegional integration agreements are examples of second-best policies and have an ambiguous impact on welfare. This article builds a model in which regional integration agreements unambiguously raise welfare by correcting for externalities. It assumes that trade between neighboring countries raises trust between them and reduces the likelihood of conflict. The optimum intervention in that case is a subsidy on imports from the neighbor. The article shows that an equivalent solution is for the neighboring countries to tax imports from the rest of the world that is, to form a regional integration agreement together with some domestic taxes. The article shows that (1) the optimum tariffs on imports from the rest of the world are likely to decline over time; (2) deep integration implies lower optimum external tariffs if it is exogenous; (3) optimum external tariffs are higher before deep integration and lower thereafter if deep integration is endogenous; and (4) enlargement of bloc size (in terms of symmetric countries) has an ambiguous impact on external tariffs but raises welfare, and some form of domino effect exists.en
dc.identifierhttp://documents.worldbank.org/curated/en/1998/05/17718660/regional-integration-diplomacy
dc.identifier.citationWorld Bank Economic Review
dc.identifier.doi10.1596/16435
dc.identifier.urihttps://hdl.handle.net/10986/16435
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectABSOLUTE VALUE
dc.subjectAGRICULTURAL TRADE
dc.subjectANDEAN PACT
dc.subjectAVERAGE TARIFFS
dc.subjectBENEFITS OF TRADE
dc.subjectBORDER MEASURES
dc.subjectCAPITAL GOODS
dc.subjectCIVIL WAR
dc.subjectCOMMON MARKET
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONCESSIONS
dc.subjectCONSUMER PRICES
dc.subjectCONSUMERS
dc.subjectCURRENCY
dc.subjectCUSTOMS
dc.subjectCUSTOMS UNION
dc.subjectCUSTOMS UNIONS
dc.subjectDEMAND CURVE
dc.subjectDEMAND CURVES
dc.subjectDEMOCRACIES
dc.subjectDEMOCRACY
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIVIDEND
dc.subjectDOMESTIC TAXES
dc.subjectECONOMIC AGREEMENTS
dc.subjectECONOMIC COOPERATION
dc.subjectECONOMIC INTEGRATION
dc.subjectECONOMIC OBJECTIVES
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC POWER
dc.subjectECONOMIC REFORM
dc.subjectECONOMIC RELATIONS
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC THEORY
dc.subjectECONOMIC WELFARE
dc.subjectECONOMICS RESEARCH
dc.subjectECONOMIES OF SCALE
dc.subjectELASTICITY
dc.subjectELASTICITY OF DEMAND
dc.subjectEMBARGO
dc.subjectEQUATIONS
dc.subjectEQUILIBRIUM
dc.subjectEUROPEAN UNION
dc.subjectEXPORT SUBSIDIES
dc.subjectEXPORTS
dc.subjectEXTERNAL BARRIERS
dc.subjectEXTERNAL TARIFF
dc.subjectEXTERNAL TARIFFS
dc.subjectEXTERNAL TRADE
dc.subjectEXTERNAL TRADE BARRIERS
dc.subjectEXTERNAL TRADE POLICY
dc.subjectEXTERNALITIES
dc.subjectEXTERNALITY
dc.subjectFACE VALUE
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN SOURCES
dc.subjectFORMAL ANALYSIS
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENT
dc.subjectFREE TRADE AGREEMENTS
dc.subjectFUNCTIONAL FORMS
dc.subjectGENERAL AGREEMENT ON TARIFFS
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectGLOBAL TRADING
dc.subjectGRANGER CAUSALITY
dc.subjectHARMONIZATION
dc.subjectHOME COUNTRY
dc.subjectIMPACT OF TRADE
dc.subjectINCOME
dc.subjectINCOMES
dc.subjectINSURANCE
dc.subjectINTERNAL MARKET
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL POLITICS
dc.subjectINTERNATIONAL TRADE
dc.subjectINTERNATIONAL TRADING
dc.subjectMARGINAL PRODUCTS
dc.subjectMARGINAL UTILITY
dc.subjectMARGINAL VALUE
dc.subjectMARKET ACCESS
dc.subjectMARKET SEGMENTATION
dc.subjectMARKET SHARE
dc.subjectMUTUAL INVESTMENT
dc.subjectMUTUAL RECOGNITION
dc.subjectMUTUAL RECOGNITION OF STANDARDS
dc.subjectNASH EQUILIBRIUM
dc.subjectNATIONAL INCOME
dc.subjectOPEN MARKETS
dc.subjectOPTIMIZATION
dc.subjectOUTPUT
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY RESEARCH
dc.subjectPOSITIVE EXTERNALITIES
dc.subjectPOSITIVE EXTERNALITY
dc.subjectPOTENTIAL CONFLICTS
dc.subjectPREFERENTIAL TRADE
dc.subjectPREFERENTIAL TRADE AGREEMENTS
dc.subjectPREFERENTIAL TRADING ARRANGEMENTS
dc.subjectPRESENT VALUE
dc.subjectPRICE OF IMPORTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPUBLIC GOOD
dc.subjectREGIONAL GROUPS
dc.subjectREGIONAL INTEGRATION
dc.subjectREGIONAL INTEGRATION AGREEMENT
dc.subjectREGIONAL INTEGRATION AGREEMENTS
dc.subjectREGIONAL POWERS
dc.subjectREGIONAL TRADE
dc.subjectREGIONAL TRADE AGREEMENTS
dc.subjectREGIONALISM
dc.subjectRULES OF ORIGIN
dc.subjectSECURITY CONCERN
dc.subjectSECURITY CONCERNS
dc.subjectSINGLE MARKET
dc.subjectSMALL COUNTRIES
dc.subjectSOCIAL CAPITAL
dc.subjectSOCIAL COST
dc.subjectSOCIAL DEMAND
dc.subjectSOCIAL VALUE
dc.subjectSOCIAL VALUES
dc.subjectSOCIAL WELFARE
dc.subjectTARIFF RATE
dc.subjectTAX
dc.subjectTAX RATE
dc.subjectTAXATION
dc.subjectTERMS OF TRADE
dc.subjectTRADE BARRIERS
dc.subjectTRADE BLOCKS
dc.subjectTRADE CREATION
dc.subjectTRADE DIVERSION
dc.subjectTRADE FLOWS
dc.subjectTRADE FRICTIONS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE MODEL
dc.subjectTRADE MORE
dc.subjectTRADE NEGOTIATIONS
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE PREFERENCES
dc.subjectTRADE RELATIONS
dc.subjectTRADE SURPLUS
dc.subjectTRADE TAXES
dc.subjectTRADING BLOCS
dc.subjectTRADING SYSTEM
dc.subjectUNILATERAL LIBERALIZATION
dc.subjectURUGUAY ROUND
dc.subjectUTILITY FUNCTION
dc.subjectUTILITY MAXIMIZATION
dc.subjectVALUE OF IMPORTS
dc.subjectWEALTH
dc.subjectWELFARE FUNCTION
dc.subjectWELFARE GAINS
dc.subjectWELFARE LOSS
dc.subjectWORLD ECONOMY
dc.subjectWORLD MARKET
dc.subjectWORLD PRICES
dc.titleRegional Integration as Diplomacyen
dspace.entity.typePublication
okr.date.disclosure2013-05-16
okr.date.doiregistration2025-05-06T11:21:03.589252Z
okr.doctypePublications & Research::Journal Article
okr.doctypePublications & Research::Journal Article
okr.docurlhttp://documents.worldbank.org/curated/en/1998/05/17718660/regional-integration-diplomacy
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.globalpracticeTrade and Competitiveness
okr.guid179901468337240203
okr.identifier.externaldocumentum000445729_20130516115026
okr.identifier.internaldocumentum17718660
okr.identifier.report77266
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/05/16/000445729_20130516115026/Rendered/PDF/772660JRN0WBER0Box0377301B00PUBLIC0.pdfen
okr.peerreviewAcademic Peer Review
okr.topicLaw and Development::Trade Law
okr.topicInternational Economics and Trade::Free Trade
okr.topicInternational Economics and Trade::Trade Policy
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicMacroeconomics and Economic Growth
okr.unitDEC Resource Management (DECRM)
okr.volume12(2)
relation.isJournalIssueOfPublication2a6be651-2685-47f9-bd21-dd1568bd252b
relation.isJournalIssueOfPublication.latestForDiscovery2a6be651-2685-47f9-bd21-dd1568bd252b
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication7b7a6a2e-b1a4-4d1f-8b47-76e83f5f69bb
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