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Endogenous trading bloc formation in a North-South global economy

Author

Listed:
  • Satya P. Das

    (Indian Statistical Institute, New Delhi)

  • Subhadip Ghosh

    (Indian Statistical Institute, New Delhi)

Abstract

Majority of the trading blocs to date are between similar countries, rather than between developed and developing countries. This paper provides a rationale for why trading blocs among similar countries may arise as an equilibrium phenomenon. It develops a model of an asymmetric world economy, in which there are at least four countries. The countries are differentiated with respect to their market size and market structure.

Suggested Citation

  • Satya P. Das & Subhadip Ghosh, 2003. "Endogenous trading bloc formation in a North-South global economy," Discussion Papers 03-04, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:03-04
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    File URL: http://www.isid.ac.in/~pu/dispapers/dp03-04.pdf
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    More about this item

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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