Returns to Regionalism: An Evaluation of Non-traditional Gains from RTAs

Raquel Fernandez

No 1634, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The last decade has witnessed an explosion in the number of regional trade agreements (RTAs). There seems to be a general, if ill-defined, belief on the part of many policy-makers, and among some academics as well, that there is more to an RTA then the traditional gains from trade. This paper examines several possible benefits that RTAs may confer on their partners, including credibility, signalling, bargaining power, insurance, and coordination. It assesses the necessary conditions for each of these candidates to work; gives stylized examples of specific types of policy where it might be applicable; examines real cases where the explanation might be relevant; and discusses their overall plausibility. It concludes by examining NAFTA and the Europe Agreements viewed in this light.

Keywords: Credibility; Europe Agreements; NAFTA; Regional Trade Agreements; Signaling (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 1997-04
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1634 (application/pdf)

Related works:
Working Paper: Returns to Regionalism: An Evaluation of Non-Traditional Gains from RTAs (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1634

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1634

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().