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Strategic Regional Integration

Kjetil Bjorvatn (), Nicola Coniglio () and Hiroshi Kurata ()
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Kjetil Bjorvatn: NHH Norwegian School of Economics
Hiroshi Kurata: Tohoko Gakuin University

No 07-2016, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: We analyze the impact of globalization on the incentive to strengthen regional integration. In a simple three-country oligopolistic trade model, we demonstrate that increased external competitive pressure may induce governments, ináuenced by producer interests, to lower intra-regional trade costs in order to mitigate the effects of external competition on local businesses.

Keywords: Regional integration; Globalization; Cournot competition (search for similar items in EconPapers)
JEL-codes: F12 F15 F6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-ure
Date: 2016-11, Revised 2016-11
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