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Discussion of Alan V Deardorff, 'The effects of trade liberalization on the members of a trading bloc: a lumpy country analysis'

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posted on 2023-06-08, 05:06 authored by L. Alan WintersL. Alan Winters
This is a very stimulating paper and also a very readable one. Alan Deardorff takes a complex model and makes it accessible to a wide audience. In its focus on sub-national geographical entities (regions of a country, countries in a union), it is a close relation of the new economic geography, but it uses only neoclassical tools; in particular, it is rooted in the tradition of perfect competition. The basic idea is that, if at least one of two regions in a country lies outside the cone of diversification, national trade liberalization will have different effects in different regions. One of the nice features of the model is that lying outside the cone is not a matter of mere coincidence, but can actually be induced by distortions in the initial, pre-liberalization, conditions.

History

Publication status

  • Published

Publisher

Cambridge University Press

Page range

167-168

Pages

352.0

Book title

The New Transatlantic Economy

Place of publication

Cambridge

ISBN

9780521562058

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Editors

Matthew B Canzoneri, Vittorio Grilli, Wilfred J Ethier

Legacy Posted Date

2012-08-09

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