Endogenous trading bloc formation in a North-South global economy

Satya P. Das () and Subhadip Ghosh
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Satya P. Das: Indian Statistical Institute, New Delhi
Subhadip Ghosh: Indian Statistical Institute, New Delhi

Discussion Papers from Indian Statistical Institute, Delhi

Abstract: Majority of the trading blocs to date are between similar countries, rather than between developed and developing countries. This paper provides a rationale for why trading blocs among similar countries may arise as an equilibrium phenomenon. It develops a model of an asymmetric world economy, in which there are at least four countries. The countries are differentiated with respect to their market size and market structure.

JEL-codes: F02 F13 F15 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2003-08
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Persistent link: https://EconPapers.repec.org/RePEc:alo:isipdp:03-04

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