Dynamic Adjustment to Regional Integration: Europe 1992 and NAFTA

摘要: Abstract Recent research on the gains to trade liberalization, especially in a number of papers by Richard Baldwin, suggests that static liberalization many economists attempt measure may be dwarfed dynamic gains. One source these is through capital accumulation. A similar argument can made regarding consequences regional integration. As distortions are removed effects aggregate output adjustments likely larger than simple calculations suggest. This paper focuses issue integration for two recent episodes, European known as Europe 1992, and North American Free Trade Agreement (NAFTA). The provides empirical results size nature global examples J. Japan. Int. Econ., December 1994, 8 (4), pp. 422–453. Research School Pacific Asian Studies, Australian National University, Canberra ACT 0200, Australia; Brookings Institution, Washington, DC 20036.