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The Welfare Implications of Trading Blocs among Countries with Different Endowments

In: The Regionalization of the World Economy

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  • Antonio Spilimbergo
  • Ernesto Stein

Abstract

This paper presents a model in which trade is motivated both by preference for variety and comparative advantages. This framework is used to analyze the welfare implications of trading blocs among countries with different endowments with and without transportation costs. This paper was prepared for the NBER Conference on Regionalization of the World Economy, October 1995, Woodstock, Vermont.

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This chapter was published in:

  • Jeffrey A. Frankel, 1998. "The Regionalization of the World Economy," NBER Books, National Bureau of Economic Research, Inc, number fran98-1, July.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 7822.

    Handle: RePEc:nbr:nberch:7822

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    References

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    1. Stern, R.M. & Deardorff, A.V., 1992. "Multilateral Trade Negociations and Preferential Trading Arrangements," Working Papers, Research Seminar in International Economics, University of Michigan 307, Research Seminar in International Economics, University of Michigan.
    2. Bond, E.W. & Syropoulos, C., 1993. "Optimality and Stability of Regional Trading Blocs," Papers, Pennsylvania State - Department of Economics 5-93-2, Pennsylvania State - Department of Economics.
    3. Ernesto Stein & Jeffrey Frankel, 1994. "The welfare implications of continental trading blocs in a model with transport costs," Pacific Basin Working Paper Series, Federal Reserve Bank of San Francisco 94-03, Federal Reserve Bank of San Francisco.
    4. Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, American Economic Association, vol. 87(4), pages 506-19, September.
    5. Spilimbergo, Antonio, 2000. " Growth and Trade: The North Can Lose," Journal of Economic Growth, Springer, Springer, vol. 5(2), pages 131-46, June.
    6. Jon D. Haveman, 1996. "Some Welfare Effects of Sequential Customs Union Formation," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 29(4), pages 941-58, November.
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    Cited by:
    1. Winters, L. Alan, 1996. "Regionalism versus Multilateralism," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1525, C.E.P.R. Discussion Papers.
    2. Arvind Panagariya, 1998. "Do transport costs justifyregional preferential trading arrangements? no," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 134(2), pages 280-301, June.
    3. Alexandre Skiba, 2007. "Regional Economies of Scale in Transportation and Regional Welfare," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200705, University of Kansas, Department of Economics, revised Sep 2007.
    4. Souleymane COULIBALY, 2006. "Evaluating the Trade and Welfare Effects of Developing RTAs," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 06.03, Université de Lausanne, Faculté des HEC, DEEP.
    5. Lev Freinkman & Evgeny Polyakov & Carolina Revenco, 2004. "Trade Performance and Regional Integration of the CIS Countries," World Bank Publications, The World Bank, number 14933, August.
    6. Baldwin, Richard, 2008. "Big-Think Regionalism: a Critical Survey," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6874, C.E.P.R. Discussion Papers.
    7. Frankel, Jeffrey A & Stein, Ernesto & Wei, Shang-Jin, 1996. "Regional Trading Arrangements: Natural or Supernatural," American Economic Review, American Economic Association, American Economic Association, vol. 86(2), pages 52-56, May.
    8. Anna Maria Mayda & Chad Steinberg, 2006. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," Working Papers, Georgetown University, Department of Economics gueconwpa~06-06-03, Georgetown University, Department of Economics.
    9. Arvind Panagariya, 2003. "The Regionalism Debate: An Overview," International Trade, EconWPA 0309007, EconWPA.
    10. Panagariya, A., 1997. "Preferential trading and the myth of natural trading partners," Japan and the World Economy, Elsevier, Elsevier, vol. 9(4), pages 471-489, December.
    11. Baier, Scott L. & Bergstrand, Jeffrey H., 2004. "Economic determinants of free trade agreements," Journal of International Economics, Elsevier, Elsevier, vol. 64(1), pages 29-63, October.

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