Author
James Lake
Other affiliations: Methodist University
Bio: James Lake is an academic researcher from Southern Methodist University. The author has contributed to research in topics: Free trade & Tariff. The author has an hindex of 8, co-authored 28 publications receiving 171 citations. Previous affiliations of James Lake include Methodist University.
Papers
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TL;DR: In this article, the authors endogenize the equilibrium path of PTAs among two close countries and one far country using a farsighted dynamic model, and show that FTA formation can induce participation because FTAs provide a flexibility benefit an FTA member can form further PTAs with non-members but a CU member must do so jointly with all existing members.
Abstract: Casual observation reveals a striking phenomenon of Preferential Trade Agreements (PTAs) : while Customs Unions (CUs) are only intra-regional, Free Trade Agreements (FTAs) are inter and intra-regional. Using a farsighted dynamic model, we endogenize the equilibrium path of PTAs among two close countries and one far country. Rising transport costs mitigate the cost of discrimination faced by the far country as a CU non-member and diminish the value of preferential access as a CU member. Thus, sufficiently large transport costs imply an FTA is the only type of PTA that can induce the far country's participation in PTA formation. Unlike CU formation, FTA formation can induce participation because FTAs provide a flexibility benefit an FTA member can form further PTAs with non-members but a CU member must do so jointly with all existing members. Hence, in equilibrium, CUs are intra-regional while FTAs are intra- and inter-regional.
28 citations
TL;DR: In this article, the authors endogenize the equilibrium path of PTAs among two close countries and one far country using a farsighted dynamic model, and show that FTA formation can induce participation because FTAs provide a flexibility benefit: an FTA member can form further PTAs with non-members but a CU member must do so jointly with all existing members.
23 citations
TL;DR: This article decompose representative-specific contributions across issues as well as issue-specific lobbying expenditures across representatives and show how this decomposition can qualitatively affect results regarding the relationship between political money and Congressional voting behavior on trade policy.
22 citations
TL;DR: In this paper, the authors use a dynamic farsighted model of network formation among asymmetric countries to determine whether FTAs are necessary or sufficient for global free trade in the presence of multilateral negotiations.
Abstract: In the presence of multilateral negotiations, are Free Trade Agreements (FTAs) necessary for, or will they prevent, global free trade? I answer this question using a dynamic farsighted model of network formation among asymmetric countries. Ultimately, FTAs prevent global free trade when there are two larger countries and one smaller country but FTAs can be necessary for global free trade when there are two smaller countries and one larger country. The model provides insights into the dynamics of recent real-world negotiations and recent results in the literature on the empirical determinants of trade agreements. (JEL C71, F12, F13)
22 citations
TL;DR: In this paper, the authors examined the effect of tariff phase-out and delayed pass-through of tariffs into import prices and found evidence for an important role played by NAFTA tariff cuts reducing the impact of frictions that, in turn, allow for a spatial expansion of imports across the U.S.
22 citations
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