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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," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 03-04, Indian Statistical Institute, New Delhi, India.
  • Handle: RePEc:ind:isipdp:03-04
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    Cited by:

    1. Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany.
    2. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
      [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]
      ," MPRA Paper 16473, University Library of Munich, Germany.
    3. Paul Missios & Halis Murat Yildiz, 2017. "Do SouthSouth preferential trade agreements undermine the prospects for multilateral free trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 50(1), pages 111-161, February.
    4. Chang, Yang-Ming & Xiao, Renfeng, 2015. "Preferential trade agreements between asymmetric countries: Free trade areas (with rules of origin) vs. customs unions," Japan and the World Economy, Elsevier, vol. 33(C), pages 28-43.
    5. Leopoldo Yanes, 2008. "R&D, Market Structure and Trade: A General Equilibrium Analysis," Discussion Papers Series 361, School of Economics, University of Queensland, Australia.

    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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