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La poursuite de cibles industrielles dans des zones de libre échange quand les politiques sont indépendantes.
Author(s) -
Grinols Earl L.,
Silva Peri
Publication year - 2008
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2008.00486.x
Subject(s) - industrialisation , independence (probability theory) , economics , mechanism (biology) , international trade , international economics , member states , industrial policy , market economy , european union , philosophy , statistics , mathematics , epistemology
. We investigate the limits of a mechanism for free trade area (FTA) formation that simultaneously satisfies internal industrialization targets. For arbitrary targets, we find necessary and sufficient conditions that guarantee that the mechanism is efficient for member countries individually, even if other members do not implement the efficient policy. When the objective is conservative – designed to protect the level of industrialization previously achieved by the target industry – member countries are guaranteed gains from the efficient policy and their FTA participation. The analysis covers cases with transportation costs and explains why minimally restrictive rules of origin support efficiency and policy independence.