Is World Trade Becoming More Regionalized?

Kym Anderson and Hege Norheim

Review of International Economics, 1993, vol. 1, issue 2, 91-109

Abstract: The rise in intraregional trade shares and the proliferation of regional trade agreements does not necessarily mean economies excluded from those agreements are harmed. Trade data show that the share of each region's GDP that is traded extraregionally has been growing steadily following its fall in the 1930s. That is, the rapid growth of OECD countries' trade among neighbors has been accompanied by (albeit somewhat less rapid) growth in extraregional trade. This does not constitute proof that regional agreements benefit outsiders, but it at least throws doubt on the opposite conclusion. Copyright 1993 by Blackwell Publishing Ltd.

Date: 1993
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