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Journal of Economic Integration 2005 June;20(2) :318-328.
Economic Integration, Non-tariff Barriers and Social Welfare
Aitor Calo-Blanco and 
José Méndez Naya 
University of Alicante
University of A Coruña
Copyright ©2005 Journal of Economic Integration

This paper analyses the extent to which preferential trade agreements can lead to the substitution of non-tariff barriers for tariffs, and the effects of non-tariff barriers on welfare and other parameters. Its main results are that non-tariff barriers reduce aggregate welfare, and that the governments of economically integrated countries replace tariffs by non-tariff barriers if and only if their priority is protection of their nations' firms.

JEL Classifications: F12, F13, F14

Keywords: Economic integration | Commercial policies | Tariff and nontariff barriers
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