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Partial Free Trade Agreements and Economic Welfare: Reconsidering GATT Article 24
Author(s) -
Ohyama Michihiro
Publication year - 2007
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2007.00424.x
Subject(s) - economics , partial equilibrium , welfare , international economics , generalization , free trade , rest (music) , international trade , cover (algebra) , general equilibrium theory , macroeconomics , market economy , philosophy , mechanical engineering , cardiology , epistemology , engineering , medicine
Abstract This paper generalizes the Kemp–Wan theorem on the customs union to cover partial and incomplete free trade agreements emerging all over the world and elucidates the conditions which ensure that they are potentially conducive to the economic welfare of member countries without harming the rest of the world. In the light of this generalization, it also reconsiders two well‐known conditions stipulated in Article 24 of the GATT required for the formation of FTAs.