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The Welfare Implications of Trading Blocs among Countries with Different Endowments

In: The Regionalization of the World Economy

  • Antonio Spilimbergo
  • Ernesto Stein

This paper presents a model in which trade is motivated both by preference for variety and comparative advantages. This framework is used to analyze the welfare implications of trading blocs among countries with different endowments with and without transportation costs. This paper was prepared for the NBER Conference on Regionalization of the World Economy, October 1995, Woodstock, Vermont.

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This chapter was published in:
  • Jeffrey A. Frankel, 1998. "The Regionalization of the World Economy," NBER Books, National Bureau of Economic Research, Inc, number fran98-1, July.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 7822.
    Handle: RePEc:nbr:nberch:7822
    Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
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    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.:

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    1. Spilimbergo, Antonio, 2000. " Growth and Trade: The North Can Lose," Journal of Economic Growth, Springer, vol. 5(2), pages 131-46, June.
    2. Ernesto Stein & Jeffrey Frankel, 1994. "The welfare implications of continental trading blocs in a model with transport costs," Pacific Basin Working Paper Series 94-03, Federal Reserve Bank of San Francisco.
    3. Bond, E.W. & Syropoulos, C., 1993. "Optimality and Stability of Regional Trading Blocs," Papers 5-93-2, Pennsylvania State - Department of Economics.
    4. Stern, R.M. & Deardorff, A.V., 1992. "Multilateral Trade Negociations and Preferential Trading Arrangements," Working Papers 307, Research Seminar in International Economics, University of Michigan.
    5. Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-19, September.
    6. Jon D. Haveman, 1996. "Some Welfare Effects of Sequential Customs Union Formation," Canadian Journal of Economics, Canadian Economics Association, vol. 29(4), pages 941-58, November.
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