Chapter 3: Theory of customs unions
Chapter 3 overviews issues related to customs unions and free trade areas, which are the most rigorously developed part of the theory of international economic integration. The analysis is carried out through static and dynamic approaches, as well as in partial and general equilibrium frameworks. Increased competition on a secured and enlarged market by means of integration, specialisation and returns to scale receives special treatment, as these are the most important dynamic effects. A discussion of adjustment costs suggests that they do not always represent a serious barrier to integration, especially in the medium and long run.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.