North-South Customs Unions and International Capital Mobility
This paper examines the implications of a North-South trade accord where investments in the Southern partner nation exhibit country risk. Our analysis demonstrates that North-South trade accords can serve as credibility-enhancing mechanisms that induce additional foreign capital inflows into Southern partner nations. The presence of sovereign risk changes the tradeoffs between trade creation and diversion, enhancing the potential for regional trade accords to increase the welfare of accord members.
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Working Papers biblioteca |
| Language: | English |
| Published: |
Inter-American Development Bank
|
| Subjects: | Integration and Trade, F15 - Economic Integration, F21 - International Investment • Long-Term Capital Movements, O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance, WP-341;international capital mobility, |
| Online Access: | http://dx.doi.org/10.18235/0011544 https://publications.iadb.org/en/north-south-customs-unions-and-international-capital-mobility |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|