Enlargement Decisions of Regional Trading Blocs View Full Text


Ontology type: schema:Chapter     


Chapter Info

DATE

2016

AUTHORS

Sunandan Ghosh

ABSTRACT

This paper tries to link the literature on equilibrium analyses of trading blocs with those analyzing the effect of policy centralization corresponding to widening and deepening choices faced by existing unions. In particular, this paper analyzes the decision of an existing bilateral free trade area regarding expansion vis-à-vis consolidation (transformation into customs union) or both simultaneously. The analytical framework employs a standard oligopolistic strategic trade model in a four-country world incorporating both technology and market size asymmetries. Formation of customs union between two similar initial members can be sustained as a subgame perfect Nash equilibrium in a technologically asymmetric world. However, when market sizes are asymmetric, there will exist multiple equilibria depending on the extent of largeness of non-member countries. More... »

PAGES

117-157

References to SciGraph publications

  • 1999-03. International intra-industry trade of China in REVIEW OF WORLD ECONOMICS
  • Book

    TITLE

    International Trade and International Finance

    ISBN

    978-81-322-2795-3
    978-81-322-2797-7

    Author Affiliations

    Identifiers

    URI

    http://scigraph.springernature.com/pub.10.1007/978-81-322-2797-7_7

    DOI

    http://dx.doi.org/10.1007/978-81-322-2797-7_7

    DIMENSIONS

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