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Endogenous trading bloc formation in a North-South global economy

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Author Info
Satya P. Das () (Indian Statistical Institute, New Delhi)
Subhadip Ghosh (Indian Statistical Institute, New Delhi)

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Abstract

Majority of the trading blocs to date are between similar countries, rather than between developed and developing countries. This paper provides a rationale for why trading blocs among similar countries may arise as an equilibrium phenomenon. It develops a model of an asymmetric world economy, in which there are at least four countries. The countries are differentiated with respect to their market size and market structure.

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Publisher Info
Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 03-04.

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Length: 30 pages
Date of creation: Aug 2003
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Handle: RePEc:ind:isipdp:03-04

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Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

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  1. Leopoldo Yanes, 2008. "R&D, Market Structure and Trade: A General Equilibrium Analysis," Discussion Papers Series 361, School of Economics, University of Queensland, Australia. [Downloadable!]
  2. Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany. [Downloadable!]
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