Open Regionalism and World Welfare
Abstract
The recent resurgence of regionalism has raised concerns that regionalism may undermine the spirit of global free trade. This paper examines a simple four-country model of welfare-maximizing customs-union formation in which the number of customs union: and their sizes are endogenously determined. Customs unions are stepping stones toward global free trade under the open membership (open regionalism) rule. However, customs unions can be (and typically are) stumbling blocks against global free trade under exclusive membership rules, such as the unanimous regionalism rule.Download Info
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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 22 (1996)
Issue (Month): 4 (Fall)
Pages: 467-475
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Related research
Keywords: Customs Union; Free Trade; Trade; Welfare;Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
References
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- Pravin Krishna, .
"Regionalism and Multilaterialism: A Political Economy Approach,"
Working Papers
96-5, Brown University, Department of Economics.
- Pravin Krishna, 1998. "Regionalism And Multilateralism: A Political Economy Approach," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 227-250, February.
- Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-19, September.
- Richard Baldwin, 1993.
"A Domino Theory of Regionalism,"
NBER Working Papers
4465, National Bureau of Economic Research, Inc.
- Baldwin, Richard, 1993. "A Domino Theory of Regionalism," CEPR Discussion Papers 857, C.E.P.R. Discussion Papers.
- Sang-Seung, Yi, 1996. "Endogenous formation of customs unions under imperfect competition: open regionalism is good," Journal of International Economics, Elsevier, vol. 41(1-2), pages 153-177, August.
- Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Islam, Sulequl, 2003. "Expansions of the European Union and the NAFTA: Implications for New and Non-Member countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(2).
- Carlo Carraro & Barbara Buchner, 2006.
"Regional and sub-global climate blocs. A game-theoretic perspective on bottom-up climate regimes,"
Working Papers
2006_10, Department of Economics, University of Venice "Ca' Foscari".
- Carlo Carraro & Barbara Buchner, 2005. "Regional and Sub-Global Climate Blocs.A Game-Theoretic Perspective on Bottom-up Climate Regimes," Working Papers 2005.21, Fondazione Eni Enrico Mattei.
- Buchner, Barbara & Carraro, Carlo, 2005. "Regional and Sub-Global Climate Blocs. A Game-Theoretic Perspective on Bottom-up Climate Regimes," CEPR Discussion Papers 5034, C.E.P.R. Discussion Papers.
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