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Is Regionalism Viable? A Case for Global Free Trade

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  • Reza Oladi
  • Hamid Beladi

Abstract

We assume an imperfectly competitive world with n commodities and address the question of whether or not (regional) trade blocs are viable. To answer this fundamental question, we use a notion of stability, offered by Greenberg (1990) , and show that regional trade blocs are not viable as they are not stable. On the other hand, we demonstrate that a global trade bloc is viable. Therefore, our results provide theoretical support for advocates of global free trade. Copyright © 2007 The Authors.

Suggested Citation

  • Reza Oladi & Hamid Beladi, 2008. "Is Regionalism Viable? A Case for Global Free Trade," Review of International Economics, Wiley Blackwell, vol. 16(2), pages 293-300, May.
  • Handle: RePEc:bla:reviec:v:16:y:2008:i:2:p:293-300
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    Cited by:

    1. Amitrajeet Batabyal & Peter Nijkamp, 2013. "A multi-region model of economic growth with human capital and negative externalities in innovation," Journal of Evolutionary Economics, Springer, pages 909-924.
    2. Taguchi, Hiroyuki & Nishi, Emiko, Darcy, 2017. "Trade effects of ASEAN-plus-China and -Japan free trade agreements by production stage and industry," MPRA Paper 81628, University Library of Munich, Germany.
    3. E. Kwan Choi, Jai-Young Choi, 2010. "To Outsource or Not To Outsource in North-South Trade," Frontiers in Finance and Economics, SKEMA Business School, vol. 7(1), pages 60-81, April.
    4. Noritsugu Nakanishi, 2011. "Farsightedly Stable FTA Structures," Discussion Papers 1114, Graduate School of Economics, Kobe University.
    5. Choi, E. Kwan, 2011. "To integrate with a high- or low-wage country: That is the question," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 792-799, October.
    6. Mrázová, Monika & Vines, David & Zissimos, Ben, 2013. "Is the GATT/WTO's Article XXIV bad?," Journal of International Economics, Elsevier, pages 216-232.
    7. Kawasaki, Ryo & Sato, Takashi & Muto, Shigeo, 2015. "Farsightedly stable tariffs," Mathematical Social Sciences, Elsevier, vol. 76(C), pages 118-124.
    8. Hiroyuki Taguchi, 2015. "Trade creation and diversion effects of ASEAN-plus-one free trade agreements," Economics Bulletin, AccessEcon, vol. 35(3), pages 1856-1866.

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