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Panagariya, A. and Findlay, R. (1996) A Political Economy Analysis of Free Trade Areas and Customs Unions. In: Feenstra, R., Irwin, D. and Grossman, G., Eds., The Political Economy of Trade Reform, MIT Press, Cambridge, MA.

has been cited by the following article:

  • TITLE: On Selecting Strategies of FTA Partners

    AUTHORS: Chu-Chuan Hsu

    KEYWORDS: Economic Integration, Intra-Industry Trade, Bilateralism, Multilateralism

    JOURNAL NAME: Modern Economy, Vol.7 No.5, May 31, 2016

    ABSTRACT: Via the intra-industry trade Cournot model in heterogeneous goods, the study deals with the strategies of how to select partner countries of free trade agreement on basis of social welfare criteria of a country. Thus, it gets the following results: Firstly, in a two-side FTA lowers tariffs on imports from any-member states. The FTA established on the similar market size of states. To establish a one-step global FTA is easier than other ways. Finally, as for allied strategies of the FTA, the first priority big country wants to ally itself with is a medium-sized country, the second one of which is a small country. Nevertheless, it is likely that big country will never have allies; the top priority a medium-sized country wants to ally itself with is a big country; a small country is willing to ally itself to any country.