This paper analyzes the economic impact of regional integration on agricultural trade. Using a simple Krugman-type model with tariff distortions, two propositions on the the impact of regionalism on trade flows are derived: (i) the impact of regional integration is stronger, when the degree of pre-integration protection is higher, (ii) the impact is stronger, when the degree of product differentiation is lower.
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Find related papers by JEL classification: F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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