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WINNERS AND LOSERS FROM THE GRADUAL FORMATION OF TRADING BLOCS

Ines Macho-Stadler () and Licun Xue ()

Departmental Working Papers from McGill University, Department of Economics

Abstract: Although global free trade is efficient, each country’s benefit from free trade depends on the path that leads to the global free trade agreement. Using a dynamic model of trading bloc formation, we show that when global free trade is reached gradually, the countries that are initially excluded gain less than the rest and may be even made worse-off by the final free trade agreement, compared with the initial state of no trading blocs.

JEL-codes: C71 C72 F13 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2006-09
New Economics Papers: this item is included in nep-gth, nep-int, nep-pol and nep-sea
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Related works:
Journal Article: Winners and Losers from the Gradual Formation of Trading Blocs (2007) Downloads
Working Paper: Winners and losers from the gradual formation of trading blocs (2006) Downloads
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