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: 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
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