Bilateralism and Multilateralism: a Network Approach
The deadlock in the Doha Round and the proliferation of regional and bilateral trade agreements has given rise to a new interest in the potential relationship between regionalism and multilateralism. This paper has two main aims. First, the formation of free trade agreements amongst symmetric and asymmetric countries has been studied by means of the network formation theory. Second, we have focused on the connection between bilateralism and multilateralism and we have evaluated the efficiency of the equilibrium configurations. In order to characterize and distinguish between bilateral and multilateral outcomes we have used two different network stability notions, that is, pairwise stability and strong stability. Moreover, from the analysis of pairwise and strong stability we have also obtained insights on the relationship between bilateralism and multilateralism.
|Date of creation:||31 Jan 2013|
|Contact details of provider:|| Postal: via Giovanni Paolo II, 132, 84084 - Fisciano (SA), ITALY|
Phone: +39 089 962152 -
Fax: +39 089 962049
Web page: http://www.celpe.unisa.it
More information through EDIRC
References listed on IDEAS
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.:
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2007. "The Evolution of the World Trade Web," LEM Papers Series 2007/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Ronald J. Wonnacott, 1996. "Trade and Investment in a Hub-and-Spoke System Versus a Free Trade Area," The World Economy, Wiley Blackwell, vol. 19(3), pages 237-252, 05.
- Goyal, S. & Joshi, S., 1999.
"Bilateralism and free trade,"
Econometric Institute Research Papers
EI 9953-/A, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- Taiji Furusawa & Hideo Konishi, 2003.
"Free Trade Networks,"
2003.55, Fondazione Eni Enrico Mattei.
- Sergio Currarini & Massimo Morelli, 2000. "original papers : Network formation with sequential demands," Review of Economic Design, Springer;Society for Economic Design, vol. 5(3), pages 229-249.
- Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521857406, December.
- Matthew O. Jackson & Asher Wolinsky, 1994.
"A Strategic Model of Social and Economic Networks,"
1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- repec:ebl:ecbull:v:6:y:2005:i:12:p:1-17 is not listed on IDEAS
- Baier, Scott L. & Bergstrand, Jeffrey H., 2007.
"Do free trade agreements actually increase members' international trade?,"
Journal of International Economics,
Elsevier, vol. 71(1), pages 72-95, March.
- Scott L. Baier & Jeffrey H. Bergstrand, 2005. "Do free trade agreements actually increase members’ international trade?," FRB Atlanta Working Paper 2005-03, Federal Reserve Bank of Atlanta.
- Dutta, Bhaskar & Mutuswami, Suresh, 1997.
Journal of Economic Theory,
Elsevier, vol. 76(2), pages 322-344, October.
- Jaime Behar, 1991. "Economic Integration and Intra-Industry Trade: The Case of the Argentine-Brazilian Free Trade Agreement," Journal of Common Market Studies, Wiley Blackwell, vol. 29(5), pages 527-552, 09.
- James Gaisford & Olena Ivus, 2014. "Should Smaller Countries Be More Protectionist? The Diversification Motive for Tariffs," Review of International Economics, Wiley Blackwell, vol. 22(4), pages 845-862, 09.
- Taiji Furusawa & Hideo Konishi, 2005.
"Free Trade Networks With Transfers,"
The Japanese Economic Review,
Japanese Economic Association, vol. 56(2), pages 144-164.
- Sanjeev Goyal, 2007. "Introduction to Connections: An Introduction to the Economics of Networks," Introductory Chapters, in: Connections: An Introduction to the Economics of Networks Princeton University Press.
- Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-519, September.
- Juliette Milgram-Baleix & Ana Isabel Moro-Egido, 2005. "Intra-industry trade with emergent countries: what can we learn from spanish data?," Economics Bulletin, AccessEcon, vol. 6(12), pages 1-17.
- Raihan, Selim, 2004. "Trade Barriers in a Global Perspective," Centre on Regulation and Competition (CRC) Working papers 30618, University of Manchester, Institute for Development Policy and Management (IDPM).
- Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521674096, December.
- Watts, Alison, 2001. "A Dynamic Model of Network Formation," Games and Economic Behavior, Elsevier, vol. 34(2), pages 331-341, February.
When requesting a correction, please mention this item's handle: RePEc:sal:celpdp:0125. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paolo Coccorese)
If references are entirely missing, you can add them using this form.