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Expansions of the European Union and the NAFTA: Implications for New and Non-Member countries

  • Islam, Sulequl
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    This paper examines the effects of enlargement of the European Union and the NAFTA on new and non-member countries. The empirical analysis is based on the applied general equilibrium model underlying the Global Trade Analysis Project (GTAP), version 5. The paper shows that expansions of the two trade blocs will substantially benefit potential member countries in Latin America, Central and East Europe. The proposed expansions however, will cause trade diversions, especially in the textile and apparel sectors of Asia.

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    File URL: http://www.usc.es/economet/reviews/aeid323.pdf
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    Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

    Volume (Year): 3 (2003)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:eaa:aeinde:v:3:y:2003:i:3_9
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    1. Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72.
    2. Sang-Seung Yi, 1996. "Open Regionalism and World Welfare," Eastern Economic Journal, Eastern Economic Association, vol. 22(4), pages 467-475, Fall.
    3. Schiff, Maurice & Winters, L. Alan, 1997. "Regional Integration as Diplomacy," CEPR Discussion Papers 1690, C.E.P.R. Discussion Papers.
    4. Ibarra-Yunez, Alejandro, 2003. "Spaghetti regionalism or strategic foreign trade: some evidence for Mexico," Journal of Development Economics, Elsevier, vol. 72(2), pages 567-584, December.
    5. Venables, Anthony J, 2000. "Winners and Losers from Regional Integration Agreements," CEPR Discussion Papers 2528, C.E.P.R. Discussion Papers.
    6. Schiff, Maurice, 2001. "Will the Real “Natural Trading Partner” Please Stand Up?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 245-261.
    7. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR;CES;MSH, vol. 12(24), pages 125-176, 04.
    8. Soloaga, Isidro & Winters, L. Alan, 1999. "Regionalism in the Nineties: What Effect on Trade?," CEPR Discussion Papers 2183, C.E.P.R. Discussion Papers.
    9. Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications, The World Bank, number 15172.
    10. Jeffrey J. Schott, 2001. "Prospects for Free Trade in the Americas," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 103.
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