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| Title: | Distribution of gains from trade in an unequal environment: gains from trade in the SADC |
| Author: | Proff, Harald V. |
| Year: | 1997 |
| Periodical: | South African Journal of Economics |
| Volume: | 65 |
| Issue: | 4 |
| Pages: | 482-499 |
| Language: | English |
| Geographic terms: | Southern Africa South Africa |
| Subjects: | SADC terms of trade |
| External link: | https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.1997.tb01376.x/pdf |
| Abstract: | This paper examines the debate on the distribution of gains from trade in regional integration among unequally developed countries. It focuses on the SADC, which was founded in 1992. South Africa, whose GNP is almost four times that of the eleven other SADC members together, joined the community in 1993. A stated aim of the member States, affirmed in 1994, is to make the entire region a free trade area over the next eight years, but the discussion about the distribution of potential gains from trade is a major obstacle to a fast and sustainable negotiation of and integration process towards a real SADC. The plan of this article is as follows. Section 1 briefly presents the decisions in a negotiation process towards a regional integration to demonstrate the necessity of clarifying the issue of the distribution of gains from trade in the SADC. In section 2 underlying economic principles in the discussion of the distribution of the gains from trade in a static and dynamic argumentation are presented. Because of their limited relevance to the SADC an extended industry model for better evaluation of a potential bias in the gains from trade is analysed in section 3. An outlook is given in section 4. Bibliogr., notes. |
