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On the size and number of preferential trading arrangements

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Author Info
Soamiely Andriamananjara
Abstract

This paper uses a multi-country political economy model to investigate the possibility of achieving global free trade through the expansion of Preferential Trading Arrangements (PTAs). It is shown that bloc expansion would result in global free trade if blocs have an open membership. However, that would not be the case if membership were selective: at some point, the members of the bloc would stop accepting new members and this would lead to the creation of a second bloc. The likelihood of such a second bloc would make the members of the first bloc choose a larger bloc size than they would have chosen if only one bloc was allowed to form.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Journal of International Trade & Economic Development.

Volume (Year): 11 (2002)
Issue (Month): 3 (September)
Pages: 279-295
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Handle: RePEc:taf:jitecd:v:11:y:2002:i:3:p:279-295

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Related research
Keywords: Ptas; Regionalism; Multilateralism; Political Economy;

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    Other versions:
  2. Cadot, O. & De Melo, J. & Olarreaga, M., 1996. "Regional Integration and Lobbying for Tariffs Against Non-Members," University of Geneva Economics Working Papers 96.07, University of Geneva, Department of Political Economy.
    Other versions:
  3. Bhagwati, J. & Panagariya, A., 1996. "Preferential Trading Areas and Multilateralism: Strangers, Friends or Foes?," Discussion Papers 1996_09, Columbia University, Department of Economics.
  4. Richard Baldwin, 1993. "A Domino Theory of Regionalism," NBER Working Papers 4465, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. repec:fth:coluec:9596-04 is not listed on IDEAS
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  9. Paul Krugman, 1991. "The move toward free trade zones," Proceedings, Federal Reserve Bank of Kansas City, pages 7-58.
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  10. Panagariya, Arvind & Findlay, Ronald & DEC, 1994. "A political - economy analysis of free trade areas and customs unions," Policy Research Working Paper Series 1261, The World Bank. [Downloadable!]
  11. Pravin Krishna, 1998. "Regionalism And Multilateralism: A Political Economy Approach," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 227-250, February. [Downloadable!] (restricted)
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  12. Srinivasan, T-N, 1996. "Regionalism and the World Trade Organization : Is Non-Discrimination Passe?," Papers 767, Yale - Economic Growth Center.
  13. Wei, Shang-Jin & Frankel, Jeffrey A., 1996. "Can regional blocs be a stepping stone to global free trade? a political economy analysis," International Review of Economics & Finance, Elsevier, vol. 5(4), pages 339-347. [Downloadable!] (restricted)
  14. Winters, L. Alan, 1996. "Regionalism versus Multilateralism," CEPR Discussion Papers 1525, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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