کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5067607 | 1372609 | 2007 | 24 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Endogenous trade bloc formation in an asymmetric world Endogenous trade bloc formation in an asymmetric world](/preview/png/5067607.png)
This paper investigates how variations in endowments and the structure of preferences impact on the coalition formation decisions of asymmetric countries. There exist relatively few general results on the relationship between country characteristics and trade bloc formation. Here, new light is shed on this issue by systematically simulating bloc formation and by explicitly analysing the blocking behaviour of coalitions. A general equilibrium model of world trade is implemented with equilibrium coalition formation being modelled using the equilibrium concept of the core. It is found that global free trade is observed when all countries are similar. Customs unions tend to form between countries with 'adjacent' consumer preferences or with 'adjacent' endowments of their export commodity. Finally, in contrast to the existing literature but consistent with observed behaviour, it is found that free trade areas often Pareto dominate customs unions, provided consumer preferences differ sufficiently.
Journal: European Economic Review - Volume 51, Issue 4, May 2007, Pages 901-924