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COUNTERTRADE AS TRADE CREATION AND TRADE DIVERSION
Author(s) -
ABDELLATIF ABLA M.,
NUGENT JEFFREY B.
Publication year - 1994
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1994.tb00407.x
Subject(s) - trade diversion , customs union , trade creation , international trade , international economics , economics , welfare , relevance (law) , interpretation (philosophy) , international free trade agreement , economic integration , political science , market economy , computer science , programming language , law
This paper analyzes countertrade as a special case of a customs union in which the countertrade agreement gives rise (as in customs union theory) to both trade‐creating and trade‐diverting effects. The net effects on welfare are ambiguous. A detailed case study from Egypt and brief examples from other countries illustrate the relevance of this interpretation .