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Is Regionalism Viable? A Case for Global Free Trade

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Author Info

  • Reza Oladi
  • Hamid Beladi

Abstract

We assume an imperfectly competitive world with n commodities and address the question of whether or not (regional) trade blocs are viable. To answer this fundamental question, we use a notion of stability, offered by Greenberg (1990) , and show that regional trade blocs are not viable as they are not stable. On the other hand, we demonstrate that a global trade bloc is viable. Therefore, our results provide theoretical support for advocates of global free trade. Copyright � 2007 The Authors.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 16 (2008)
Issue (Month): 2 (05)
Pages: 293-300

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Handle: RePEc:bla:reviec:v:16:y:2008:i:2:p:293-300

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Cited by:
  1. Mrázová, Monika & Vines, David & Zissimos, Ben, 2013. "Is the GATT/WTO's Article XXIV bad?," Journal of International Economics, Elsevier, vol. 89(1), pages 216-232.
  2. Amitrajeet Batabyal & Peter Nijkamp, 2013. "A multi-region model of economic growth with human capital and negative externalities in innovation," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 909-924, September.
  3. Noritsugu Nakanishi, 2011. "Farsightedly Stable FTA Structures," Discussion Papers 1114, Graduate School of Economics, Kobe University.
  4. Choi, E. Kwan, 2011. "To integrate with a high- or low-wage country: That is the question," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 792-799, October.

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