Analysis of Welfare-Improving Rules of Origin in Free Trade Agreements: The Case of Buyer Monopoly by Region's Final Goods Producers

Authors

  • Syed Khusro Chishty Saudi Electronic University, Department of Business and Administration, College of Administration and Finance,Jeddah, 23442, Saudi Arabia Author

DOI:

https://doi.org/10.56294/sctconf20251541

Keywords:

Free trade zone, Rules of origin, Economic welfare, Buyer monopoly

Abstract

This paper analyzes the effects of rules of origin in free trade agreements on economic welfare and the optimal level of rules of origin. In a situation where final goods producers monopolize intermediate goods produced in the region, a marginal increase in the level of the rules of origin reduces the monopoly power of final goods producers. It increases the economic welfare of the region. In this case, it is also possible to establish a free trade zone that does not reduce the economic welfare of countries outside the region and does not reduce the economic welfare of the world as a whole.

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Published

2025-02-27

How to Cite

1.
Chishty SK. Analysis of Welfare-Improving Rules of Origin in Free Trade Agreements: The Case of Buyer Monopoly by Region’s Final Goods Producers. Salud, Ciencia y Tecnología - Serie de Conferencias [Internet]. 2025 Feb. 27 [cited 2025 Apr. 3];4:1541. Available from: https://conferencias.ageditor.ar/index.php/sctconf/article/view/1541