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- Title
UNILATERAL TRADE LIBERALIZATION AND GLOBAL WORLD INCOME.
- Authors
Vanek, Jaroslav
- Abstract
The article focuses on the writings of economists J. Meade and S.A. Ozga, which concluded that unilateral trade liberalization in a world where other countries impose trade restrictions can be detrimental to total world income and welfare. Meade does not provide a rigorous proof of the proposition, rather he points out the conditions which will tend to make such an outcome more likely, using his customary criteria of second best evaluation. Ozga, on the other hand, presents a set of lengthy concrete examples, based on such restrictive assumptions as constant (marginal) opportunity costs and strict proportionality of consumption of all products. Both Meade's and Ozga's analyses require adding the gains of some with losses of others in arriving at an index of global world income. Ozga's study, moreover, may leave some readers with the impression that the result depends crucially on his assumption of proportionality. The article derives a certain number of fairly significant policy conclusions with respect to unilateral trade liberalization
- Subjects
TRADE regulation; MEADE, J.; OZGA, S. A.; FREE trade; CONSUMPTION (Economics); LIBERALISM
- Publication
Quarterly Journal of Economics, 1964, Vol 78, Issue 1, p139
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1880549