2007Yunnan Caijing Daxue xuebaoRequires access

On a "New" Type of Customs Union: Hybrid Customs Union

Zhang Ru-qing

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Abstract

There is an incorrect prevailing view in economic field that trade diversion customs union may either lead to trade creation or trade diversion.This kind of so called trade diversion customs union is in fact a kind of hybrid customs union which consists of a pure trade creation customs union and a pure trade diversion customs union.Weather an ally could get benefit from the establishment of customs union depends on the relative strengths of these two opposite forces.If trade creation is larger than trade diversion,benefit could be increased and vice versa.When they are equal to another,benefit may have no changes.

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What this paper is about

There is an incorrect prevailing view in economic field that trade diversion customs union may either lead to trade creation or trade diversion.This kind of so called trade diversion customs union is in fact a kind of hybrid customs union which consists of a pure trade creation customs union and a pure trade diversion customs union.Weather an ally could get benefit from the establishment of customs union depends on the relative strengths of these two opposite forces.If trade creation is larger than trade diversion,benefit could be increased and vice versa.When they are equal to another,benefit may have no changes.

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Available abstract

There is an incorrect prevailing view in economic field that trade diversion customs union may either lead to trade creation or trade diversion.This kind of so called trade diversion customs union is in fact a kind of hybrid customs union which consists of a pure trade creation customs union and a pure trade diversion customs union.Weather an ally could get benefit from the establishment of customs union depends on the relative strengths of these two opposite forces.If trade creation is larger than trade diversion,benefit could be increased and vice versa.When they are equal to another,benefit may have no changes.

Key concepts: Customs union, Trade diversion, Trade creation, International free trade agreement, International trade, Single market, Economic integration, Economic union

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