Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2000-07-31
Number: 00-061/2
Author-Name: Joseph Francois
Author-Email: francois@few.eur.nl
Author-Workplace-Name: Erasmus University Rotterdam, and CEPR
Author-Name: M. Rombout
Author-Workplace-Name: Erasmus University Rotterdam
Title: Preferential Trade Arrangements, Induced Investment, and National Income in a Heckscher-Ohlin-Ramsey Model
Abstract: We develop a Heckscher-Ohlin-Ramsey model, combining dual techniqueswith classic geometric techniques fromtrade theory.  This framework is used to explore the long-run generalequilibrium effects of regional integration(preferential trade agreements).  Emphasis is placed on positivemechanics related to adjustment in the capitalstock, long-run changes in the pattern in trade, and the implicationsfor changes in long-run (steady-state)national income. The importance of relative country size and thedynamic implications for third countries are alsoaddressed.
Classification-JEL: F15; F41; F1
Keywords: regionalism; trade and investment; preferential trade arrangements; Heckscher Ohlin Ramsey model; trade and growth
File-Url: https://papers.tinbergen.nl/00061.pdf
File-Format: application/pdf
File-Size: 110488 bytes
Handle: RePEc:tin:wpaper:20000061