Open Regionalism in a World of Continental Trade Blocs

Jeffrey Frankel and Shang-Jin Wei

No 1998/010, IMF Working Papers from International Monetary Fund

Abstract: Continental trade blocs are emerging in many parts of the world almost in tandem. If trade blocs are required to satisfy the McMillan criterion of not lowering trade volume with outside countries, they have to engage in a dramatic reduction of trade barriers against non-member countries. That may not be politically feasible. On the other hand, in a world of simultaneous continental trade blocs, an open regionalism in which trade blocs undertake relatively modest external liberalization can usually produce Pareto improvement.

Keywords: WP; trade bloc; bloc liberalization; tariff level; bloc agreement; trade volume; Trade agreements; Tariffs; Imports; Trade liberalization; Transportation; Australia and New Zealand (search for similar items in EconPapers)
Pages: 17
Date: 1998-02-01
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Citations: View citations in EconPapers (66)

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Related works:
Journal Article: Open Regionalism in a World of Continental Trade Blocs (1998)
Working Paper: Open Regionalism in a World of Continental Trade Blocs (1995)
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