Winners And Losers From The Gradual Formation Of Trading Blocs
AbstractAlthough global free trade is efficient, each country’s benefit from free trade depends on the path that leads to the global free trade agreement. Using a dynamic model of trading bloc formation, we show that when global free trade is reached gradually, the countries that are initially excluded gain less than the rest and may be even made worse-off by the final free trade agreement, compared with the initial state of no trading blocs.
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Bibliographic InfoPaper provided by McGill University, Department of Economics in its series Departmental Working Papers with number 2006-27.
Length: 38 pages
Date of creation: Sep 2006
Date of revision:
Other versions of this item:
- Ines Macho-Stadler & Licun Xue, 2007. "Winners and Losers from the Gradual Formation of Trading Blocs," Economica, London School of Economics and Political Science, vol. 74(296), pages 664-681, November.
- Inés Macho-Stadler & Licun Xue, 2006. "Winners and losers from the gradual formation of trading blocs," Working Papers 274, Barcelona Graduate School of Economics.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-30 (All new papers)
- NEP-GTH-2006-09-30 (Game Theory)
- NEP-INT-2006-09-30 (International Trade)
- NEP-POL-2006-09-30 (Positive Political Economics)
- NEP-SEA-2006-09-30 (South East Asia)
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