Preferential trade agreements and global sourcing
نویسندگان
چکیده
We develop a new framework to study the welfare consequences of preferential trade agreements (PTAs) under global sourcing, incomplete contracts and endogenous matching. uncover several channels through which PTAs affect welfare. Some effects stem from intensive margin changes—i.e., changes in investment production existing vertical chains—and extensive relocations—i.e., due formation destruction chains. In each case, there are potential trade-creating, trade-diverting relationship-strengthening forces. The first two reminiscent classical Vinerian approach, but take different forms sourcing. third is entirely regionalism literature arises because severity hold-up problems sourcing relationships. characterize those forces show circumstances when necessarily welfare-enhancing or welfare-decreasing. particular, we that, effect, can improve even all types trade-creation absent.
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ژورنال
عنوان ژورنال: Journal of International Economics
سال: 2021
ISSN: ['0022-1996', '1873-0353']
DOI: https://doi.org/10.1016/j.jinteco.2020.103395