Advanced Search
MyIDEAS: Login to save this paper or follow this series

Multilateral Versus Regional Trading Arrangements: Substitutes Or Compliments?

Contents:

Author Info

  • Richard Lipsey

    ()
    (Simon Fraser University)

  • Murray Smith

    ()

Abstract

We summarise salient developments in the interaction of the multilateral trading system and multilateral trading agreements (MTAs) on the one hand and regional trading agreements (RTAs) on the other. We then consider the economic effects of RTAs, comparing customs unions with free trade agreements. We argue, contrary to much received wisdom, that either may produce more economic benefits than the other, depending on the specific context in which they are introduced. There follows a discussion of the political economy effects of RTAs. Some of these have unfavourable, some neutral and some favourable effects on the progress of further MTAs. We conclude that the case against RTAs as eroding the MTS and inhibiting further MTA negotiations, as expounded by such economists as Krueger and Bhagwati, is not well founded. There remain grounds for optimism that the process of competitive liberalisation in RTAs will lead eventually to further multilateral liberalisation.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sfu.ca/econ-research/RePEc/sfu/sfudps/dp10-03.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, Simon Fraser University in its series Discussion Papers with number dp10-03.

as in new window
Length: 37
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:sfu:sfudps:dp10-03

Contact details of provider:
Postal: Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada
Phone: (778)782-3508
Fax: (778)782-5944
Web page: http://www.sfu.ca/economics.html
More information through EDIRC

Order Information:
Postal: Working Paper Coordinator, Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada
Email:
Web: http://www.sfu.ca/economics/research/publications.html

Related research

Keywords: customs unions; free trade areas; multilateral agreements; multilateral trading system; regional agreements; rules of origin; scale economies; trade creation; trade diversion.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Anne O. Krueger, 1995. "Free Trade Agreements versus Customs Unions," NBER Working Papers 5084, National Bureau of Economic Research, Inc.
  2. Feenstra, R.C., 1995. "Estimating the Effects of Trade Policy," Department of Economics, California Davis - Department of Economics 95-10, California Davis - Department of Economics.
  3. Richard E. Baldwin, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 29(11), pages 1451-1518, November.
  4. Carlaw, Kenneth I. & Lipsey, Richard G., 2002. "Externalities, technological complementarities and sustained economic growth," Research Policy, Elsevier, Elsevier, vol. 31(8-9), pages 1305-1315, December.
  5. Richard Lipsey, 2007. "Reflections on the general theory of second best at its golden jubilee," International Tax and Public Finance, Springer, Springer, vol. 14(4), pages 349-364, August.
  6. Paul Wonnacott & Ronald J. Wonnacott, 1982. "Free Trade between the United States and Canada: Fifteen Years Later," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 8(s1), pages 412-427, October.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sfu:sfudps:dp10-03. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Working Paper Coordinator).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.