Economic integration and international trade / edited by Carsten Kowalczyk.

Acknowledgements, ix -- Introduction / Carsten Kowalczyk, xi -- Part I. Trade diversion and creation, and the general theory of second best -- 1. The economics of customs unions / Jacob Viner, 3 -- 2. The general theory of second best / Richard G. Lipsey and Kelvin Lancaster, 44 -- 3. Customs union from a single-country viewpoint / Franz Gehrels, 72 -- Part II. Preliminaries -- A. Tariff changes and welfare -- 4. Tariffs and trade in general equilibrium: comment / Ronald W. Jones, 81 -- 5. Trade and welfare in general equilibrium / Michihiro Ohyama, 88 -- B. Optimum tariffs and retaliation -- 6. On optimum tariff structures / J. de V. Graaff, 127 -- 7. Optimum tariffs and retaliation / Harry G. Johnson, 140 -- 8. The optimal tariff structure in higher dimensions / Eric W. Bond, 152 -- 9. A note on the optimal tariff, retaliation and the welfare loss from tariff wars in a framework with intra-industry trade / Daniel Gros, 166 -- C. Tariff reform -- 10. A theory of piecemeal policy recommendations / Tatsuo Hatta, 179 -- Part III. Results on integration and welfare -- A. Integration and national welfare -- 11. Inter-Commodity substitution with constant real prices: 2 the graham demand case / Richard G. Lipsey, 205 -- 12. A 3x3 Model of Customs Unions / Raymond Riezman, 233 -- 13. Is unilateral tariff reduction preferable to a customs union? The curious case of the missing foreign tariffs / Paul Wonnacott and Ronald Wonnacott, 247 -- 14. Integration in goods and factors: the role of flows and revenue / Carsten Kowalczyk, 258 -- B. Integration and union welfare -- 15. Welfare effects in customs unions / John McMillan and Ewen McCann, 273 -- 16. Delegation games in customs unions -- Konstantine Gatsios and Larry Karp, 280 -- C. Integration and world welfare -- 17. The welfare effect of tariff rate reductions in a many country world / Tatsuo Hatta and Takashi Fukushima, 289 -- 18. Paradoxes in integration theory / Carsten Kowalczyk, 298 -- 19. An elementary proposition concerning the formation of customs unions / Murray C. Kemp and Henry Y. Wan, Jr., 307 -- 20. The move toward free trade zones / Paul Krugman, 310 -- 21. Multilateral trade negotiations and referential trading arrangements / . Alan V. Deardorff, Robert M. Stem, 345 -- 22. The size of trading blocs: market power and world welfare effects / Eric W. Bond and Constantinos Syropoulos, 404 -- Part IV. Other results -- A. Customs unions versus free trade areas -- 23. Optimal tariff equilibria with customs unions / John Kennan and Raymond Riezman, 435 -- 24. Tariff revenue competition in a free trade area / Martin Richardson, 449 -- B. Integration and sidepayments -- 25. An extension of the kemp-wan theorem on the formation of customs unions / Earl L. Grinols, 461 -- 26. Bringing GATT into the core / Carsten Kowalczyk and Tomas Sjöström, 469 -- C. Integration and growth -- 27. Measurable dynamic gains from trade / Richard E. Baldwin, 489 -- 28. Do static gains from trade lead to medium-run growth? / Joy Mazumdar, 502 -- 29. Comparative advantage and long-run growth / Gene M. Grossman and Elhanan Helpman, 512 -- 30. Economic integration and endogenous growth / Luis A. Rivera-Batiz and Paul M. Romer, 532 -- Name index, 557.