Effects of the Expansion of Regional Integration Arrangements: An Intra-Industry Trade Model

US ITC Working Paper No. 2001-02-A

31 Pages Posted: 16 Feb 2001

Date Written: February 2001

Abstract

This paper uses a differentiated-good model to study the welfare effects of Regional Integration Arrangements (RIAs). It shows, on the one hand, that an expansion of a regional grouping always unambiguously hurt those that are left out even if the external tariffs of the RIA remain constant. On the other hand, the effects of an expansion on a member country's welfare is positive for small RIA size but becomes negative as the RIA becomes large.

Keywords: Regional Integration, differentiated good model, bloc expansion

JEL Classification: F02, F15, F13

Suggested Citation

Andriamananjara, Soamiely, Effects of the Expansion of Regional Integration Arrangements: An Intra-Industry Trade Model (February 2001). US ITC Working Paper No. 2001-02-A, Available at SSRN: https://ssrn.com/abstract=260280 or http://dx.doi.org/10.2139/ssrn.260280

Soamiely Andriamananjara (Contact Author)

World Bank - World Bank Institute (WBI) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202 458 0284 (Phone)

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