The Clash of Liberalizations : Preferential vs . Multilateral Trade Liberalization in the European Union ∗

@inproceedings{Karacaovali2005TheCO,
  title={The Clash of Liberalizations : Preferential vs . Multilateral Trade Liberalization in the European Union ∗},
  author={Baybars Karacaovali and Nuno Lim{\~a}o},
  year={2005}
}
  • Baybars Karacaovali, Nuno Limão
  • Published 2005
There has been an explosion in the number of preferential trade agreements (PTAs) in the last decade. PTAs are characterized by liberalization with respect to only a few partners and thus they can potentially clash with, and retard multilateral trade liberalization (MTL). Despite this important concern with PTAs, there is almost no systematic evidence on whether they actually affect MTL or not. We model the effect of PTAs on MTL and show that PTAs slow down MTL unless they involve accessions… CONTINUE READING
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