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Is Bilateralism Consistent with Global Free Trade?

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Author Info

  • Daniel E. May

    (Business School, University of Wolverhampton, U.K.)

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    Abstract

    Some studies show that bilateralism is consistent with global free trade under pairwise stability. By using an alternative stability concept we find that this is not always the case. Nonetheless, a system of transfers could help to stabilize this condition.

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    Bibliographic Info

    Article provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.

    Volume (Year): 7 (2008)
    Issue (Month): 2 (August)
    Pages: 137-152

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    Handle: RePEc:ijb:journl:v:7:y:2008:i:2:p:137-152

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    Related research

    Keywords: bilateralism; global free trade; network equilibrium;

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    References

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    1. 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.
    2. Yi, Sang-Seung, 2000. "Free-Trade Areas and Welfare: An Equilibrium Analysis," Review of International Economics, Wiley Blackwell, vol. 8(2), pages 336-47, May.
    3. Sudipta Sarangi & Robert P. Gilles, 2004. "The Role of Trust in Costly Network Formation," Econometric Society 2004 North American Summer Meetings 483, Econometric Society.
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    Cited by:
    1. May, Daniel E., 2011. "Incentives of small countries to participate in a global free trade agreement in agriculture: a theoretical analysis," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15.

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