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Strategic Regional Integration

Author

Listed:
  • Kjetil Bjorvatn

    (NHH Norwegian School of Economics)

  • Nicola Daniele Coniglio

    (Università degli Studi di Bari "Aldo Moro")

  • Hiroshi Kurata

    (Tohoko Gakuin University)

Abstract

We analyze the impact of globalization on the incentive to strengthen regional integration. In a simple three-country oligopolistic trade model, we demonstrate that increased external competitive pressure may induce governments, ináuenced by producer interests, to lower intra-regional trade costs in order to mitigate the effects of external competition on local businesses.

Suggested Citation

  • Kjetil Bjorvatn & Nicola Daniele Coniglio & Hiroshi Kurata, 2016. "Strategic Regional Integration," SERIES 07-2016, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Nov 2016.
    • Handle: RePEc:bai:series:series_wp_07-2016
    as

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    References listed on IDEAS

    as
    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Richard E. Baldwin, 2011. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocks on the Path to Global Free Trade," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 2, Edward Elgar Publishing.
    3. Freund, Caroline, 2000. "Multilateralism and the endogenous formation of preferential trade agreements," Journal of International Economics, Elsevier, vol. 52(2), pages 359-376, December.
    4. Solís, Mireya, 2013. "Business advocacy in Asian PTAs: a model of selective corporate lobbying with evidence from Japan," Business and Politics, Cambridge University Press, vol. 15(1), pages 87-116, April.
    5. Giovanni Maggi & Andres Rodriguez-Clare, 1998. "The Value of Trade Agreements in the Presence of Political Pressures," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 574-601, June.
    6. Bond, Eric W. & Syropoulos, Constantinos & Winters, L. Alan, 2001. "Deepening of regional integration and multilateral trade agreements," Journal of International Economics, Elsevier, vol. 53(2), pages 335-361, April.
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    Cited by:

    1. J. Muzurura, 2019. "Foreign Direct Investment in Zimbabwe: The Role of Uncertainty, Exports, Cost of Capital, Corruption and Market Size," The Economics and Finance Letters, Conscientia Beam, vol. 6(1), pages 9-24.

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    More about this item

    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F6 - International Economics - - Economic Impacts of Globalization

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