The empirical analysis is based on the applied general equilibrium model underlying the Global Trade Analysis Project (GTAP), version 5. The paper shows that expansions of the two trade blocs will substantially benefit potential member countries in Latin America, Central and East Europe. The proposed expansions however, will cause trade diversions, especially in the textile and apparel sectors of Asia.

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Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 3 (2003)
Issue (Month): 2 ()
Pages:
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Handle: RePEc:eaa:aeinde:v:3:y:2003:i:3_9

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F1 - International Economics - - Trade
O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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1. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR, CES, MSH, vol. 12(24), pages 125-176, 04. [Downloadable!] (restricted)
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3. Ibarra-Yunez, Alejandro, 2003. "Spaghetti regionalism or strategic foreign trade: some evidence for Mexico," Journal of Development Economics, Elsevier, vol. 72(2), pages 567-584, December. [Downloadable!] (restricted)
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   • Alejandro Ibarra-Yunez, 2003. "Spaghetti Regionalism or Strategic Foreign Trade: Some Evidence for Mexico," NBER Working Papers 9692, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
4. Sang-Seung Yi, 1996. "Open Regionalism and World Welfare," Eastern Economic Journal, Eastern Economic Association, vol. 22(4), pages 467-475, Fall. [Downloadable!]
5. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March. [Downloadable!] (restricted)

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