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A quantative analysis of the resource allocation and welfare effects of a small country’s entry in a customs union
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This dissertation aims to quantify the effects on trade flows, resource allocation and welfare of a "small" country's accession to a customs union, in the present case the forthcoming Portuguese accession
to the European Economic Community (EEC). Accession to the EEC will mean the abolition of trade barriers facing imports from future partners and those facing Portuguese exports to the EEC, as well as the adoption of a common external tariff (CET) for imports comilig from non-member countries. The changes in trade policies by Portugal and facing Portugal will certainly have repercussions, not only on trade flows but also on the structure and well-being of a trade-dependent, partially protected economy. This dissertation develops and implements a comparative static model which quantifies these effects.