Skip to main content

The Regionalization of the World Economy

Regional economic arrangements such as free trade areas (FTAs), customs unions, and currency blocs, have become increasingly prevalent in the world economy. Both pervasive and controversial, regionalization has some economists optimistic about the opportunities it creates and others fearful that it may corrupt fragile efforts to encourage global free trade.
Including both empirical and theoretical studies, this volume addresses several important questions: Why do countries adopt FTAs and other regional trading arrangements? To what extent have existing regional arrangements actually affected patterns of trade? What are the welfare effects of such arrangements? Several chapters explore the economic effects of regional arrangements on patterns of trade, either on price differentials or via the gravity model on bilateral trade flows. In addition, this book examines the theoretical foundation of the gravity model. Making extensive use of the gravity model of bilateral trade, several chapters explore the economic effects of regional arrangements. In addition, this book examines the theoretical foundation of the gravity model.

296 pages | 15 line drawings, 37 tables | 6 x 9 | © 1998

National Bureau of Economic Research Project Report

Economics and Business: Economics--International and Comparative

Table of Contents

Jeffrey A. Frankel
1: Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?
Alan V. Deardorff
Comment: Jeffrey H. Bergstrand
Comment: Gene M. Grossman
2: The Role of History in Bilateral Trade Flows
Barry Eichengreen, Douglas A. Irwin.
Comment: Robert Z. Lawrence
Comment: Paul Wonnacott
3: Why Do Countries Seek Regional Trade Agreements?
John Whalley
Comment: Eric W. Bond
Comment: Dani Rodrik
4: Continental Trading Blocs: Are They Natural or Supernatural?
Jeffrey A. Frankel, Ernesto Stein, Shang-Jin Wei.
Comment: Paul Krugman
Comment: T. N. Srinivasan
5: The Welfare Implications of Trading Blocs among Countries with Different Endowments
Antonio Spilimbergo, Ernesto Stein.
Comment: John Haveman
Comment: Edward E. Leamer
6: Regional Patterns in the Law of One Price: The Roles of Geography versus Currencies
Charles Engel, John H. Rogers.
Comment: Kenneth A. Froot
Comment: Michael Knetter
7: Regionalization of World Trade and Currencies: Economics and Politics
Jeffrey A. Frankel, Shang-Jin Wei.
Comment: David Hummels
Comment: Philip I. Levy
8: Tariff Phase-Outs: Theory and Evidence from GATT and NAFTA
Carsten Kowalczyk, Donald Davis.
Comment: Arvind Panagariya
Comment: Robert W. Staiger
9: Overview
Anne O. Krueger
Author Index
Subject Index

Be the first to know

Get the latest updates on new releases, special offers, and media highlights when you subscribe to our email lists!

Sign up here for updates about the Press