Abstract
It has long been appreciated that regional trade arrangements may have important distributive effects. These may arise at three levels: first, among factor owners or social classes within each country; second, between the partner countries (individually or as a group) and the rest of the world; and third, among the partner countries themselves. But in spite of the relatively numerous passing references made to the importance of this issue— especially for developing countries — there have been few systematic studies. Similar concern has been expressed about the role played by transnational corporations in the economic integration processes. The main preoccupation has been with foreign transnationals’ capturing an ‘unduly’ large share of the benefits from regional trade liberalisation among developing countries. In practice, in some Latin American groups, such as the Andean Common Market, that preoccupation has led to the implementation of very specific foreign investment policies as a central component of the overall integration strategy.
This paper was written while the author was a Joint Visiting Fellow at St Antony’s College, Oxford, and at the Institute of Latin American Studies, London. The author is grateful to both institutions for their hospitality.
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References
See E. Tironi, ‘Foreign Direct Investment and Economic Integration Policies: The Andean Case’, unpublished Doctoral Dissertation, Massachusetts Institute of Technology, Cambridge, Mass., 1976;
J. Bhagwati and E. Tironi, ‘Tariff Change, Foreign Capital and Immiserization: A Theoretical Analysis’, Journal of Development Economics (May 1980);
J. Bhagwati and R. Brecher, ‘National Welfare in an Open Economy in the Presence of Foreign Factors of Production’, Working Paper No. 224, MIT, October 1978;
R. Brecher and J. Bhagwati, ‘Foreign Ownership and the Theory of Trade and Welfare’, MIT (mimeo), July 1979.
H. Johnson, ‘International Trade, Income Distribution and the Offer Curve’, Manchester School, 27, 241–60, 1959;
H. Johnson, ‘Income Distribution, the Offer Curve and the Effects of Tariffs’, Manchester School, 28, 215–42, 1960.
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© 1983 International Economic Association
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Tironi, E. (1983). Distribution of Benefits from Regional Trade Liberalisation among Country Partners in the presence of Transnational Corporations. In: Weisbrod, B., Hughes, H. (eds) Human Resources, Employment and Development. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-22741-9_33
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DOI: https://doi.org/10.1007/978-1-349-22741-9_33
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