Is Regionalism Viable? A Case for Global Free Trade

8 Pages Posted: 2 Apr 2008

See all articles by Reza Oladi

Reza Oladi

Utah State University - College of Business - Department of Economics

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics

Abstract

We assume an imperfectly competitive world with n commodities and address the question of whether or not (regional) trade blocs are viable. To answer this fundamental question, we use a notion of stability, offered by Greenberg (1990), and show that regional trade blocs are not viable as they are not stable. On the other hand, we demonstrate that a global trade bloc is viable. Therefore, our results provide theoretical support for advocates of global free trade.

Suggested Citation

Oladi, Reza and Beladi, Hamid, Is Regionalism Viable? A Case for Global Free Trade. Review of International Economics, Vol. 16, Issue 2, pp. 293-300, May 2008. Available at SSRN: https://ssrn.com/abstract=1115544 or http://dx.doi.org/10.1111/j.1467-9396.2007.00716.x

Reza Oladi (Contact Author)

Utah State University - College of Business - Department of Economics ( email )

3530 Old Main Hill
Logan, UT 84322-3530
United States

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics ( email )

One UTSA Circle
P.O. Box 5636
San Antonio, TX 78249
United States
210-458-7038 (Phone)
210-458-7040 (Fax)

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