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PREFERENTIAL TRADE AGREEMENTS HARM THIRD COUNTRIES
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DOI：10.1111/ecoj.12159.png)
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We study market liberalisation under imperfect competition in the presence of price effects. For this purpose, we build a three-country model of international trade under monopolistic competition. The neighbouring effect translates how the size effect propagates across countries. When a country increases in size, its relative wage increases, as well as that in a small and nearby country, whereas that in a large and distant country falls. We also show that a preferential trade agreement increases the relative wage, the welfare and the terms of trade in the partner countries, where the integration effect dominates, while lowering those in the third country.
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3.6
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The impact of trade on intra-industry reallocations and aggregate industry productivity贸易对产业内再分配和产业总生产率的影响.png)
ECONOMETRICA
ECONOMETRICAIF7.1
PREAI
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