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Title: |
Trade Liberalization, Economic Integration and National Public Goods |
| Author: |
Feehan, James
P. |
| Author
Affiliation: |
Memorial U
Newfoundland |
| Source: |
International Economic Journal, Summer 1996, v. 10, no. 2, pp. 51-63 |
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Publication Date: |
Summer 1996 |
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Abstract: |
Policy and political debates over the
merits of economic integration are multidimensional. One important
dimension not well considered by economist relates to public goods. This
paper examines the attractiveness of trade liberalization in the
presence of national public goods. The existence of national public
goods may imply that there is an optimal level of international economic
integration beyond which further integration generates costs in excess
of benefits. Using a simple model of a small open economy, it is found
that free trade remains advantageous in the presence of national public
goods. If there is a limit to the extent to which countries may
beneficially integrate when there are public goods then it occurs at
higher levels of integration. |
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