Skip to main content

Endogenous trading bloc formation in a North-South global economy

Buy Article:

$43.00 plus tax (Refund Policy)

Abstract. 

The 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 they choose their trading partners. In the coalition-proof Nash equilibrium, either there is global free trade or free trade areas are formed among similar countries.
No References
No Citations
No Supplementary Data
No Data/Media
No Metrics

Keywords: F02; F13; F15

Document Type: Research Article

Affiliations: 1: Planning Unit, Indian Statistical Institute 2: Department of Economics, Burdwan University

Publication date: 2006-08-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more