Gains and Losses from Regional Trading Agreements: A Survey

23 Pages Posted: 20 Dec 2004

See all articles by Peter Lloyd

Peter Lloyd

University of Melbourne - Department of Economics

Donald MacLaren

University of Melbourne - Department of Economics

Abstract

This paper provides a survey of aspects of the theory of regional trading agreements and of empirical evidence relating to estimates of country gains and losses. It begins with a survey of the predictions of trade theory relating to the gains and losses to member and to non-member countries of liberalising goods trade preferentially by the formation of a free trade area or a customs union. Section III concerns the empirical evidence from Computable General Equilibrium (CGE) models. In Section IV the authors examine the CGE modelling of the recently-agreed free trade area between Australia and the USA as a case study. Other Sections discuss hub-and-spoke aspects of the evolving network of agreements and their impact on multilateral and unilateral modalities of trade liberalisation. Some general conclusions are drawn about the pattern of agreements and the need for reform of the World Trade Organization rules.

Suggested Citation

Lloyd, Peter John and MacLaren, Donald, Gains and Losses from Regional Trading Agreements: A Survey. Economic Record, Vol. 80, No. 251, pp. 445-467, December 2004. Available at SSRN: https://ssrn.com/abstract=629410

Peter John Lloyd (Contact Author)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

HOME PAGE: http://melbecon.unimelb.edu.au/staffprofile/plloyd/home.html

Donald MacLaren

University of Melbourne - Department of Economics ( email )

Victoria 3010, 3010
Australia
(61) 3 8344-5035 (Phone)
(61) 3 8344-6899 (Fax)

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