Regional trade agreements (RTAs) are considered as one of the major growth stimulant factors in the contemporary world due to their potentiality in generating welfare gains. When assessing welfare effects of RTAs, until recently, the attention of most researchers confined to the static theory, which addresses the resource allocation effect of trade integration (TI). Even though dynamic theory r...

in this paper, we first review shortly movements in international monetary system and various theories of capital flows including portfolio and balance of payments approaches. then, we will focus particularly on feldstein- horioka (f-h) approach by which capital mobility is analyzed for 16 developing countries over 1980-2003 through a panel data method. the main objective of this paper is thus ...

This paper sets up a two country monopolistic competition model with intra-industry trade to study the effects of an exogenous differential in wage and social policies on the location of industry. Two model scenarios are considered. In the traditional one with physical capital, such a differential induces a relocation effect which increases with the level of trade integration. The ‘new economic...

One of the most remarkable features of globalization is the fact that advances in technology have contributed to reducing the cost of trade (e.g., transportation and communication costs), and thus boosted international trade. Under these circumstances, the importance of distance should have diminished over time, which would constitute a boon for countries located far from the main centers of ec...

ITH the future of the Doha Round uncertain, there has been a sharp increase in the number of bilateral and regional trade agreements. This has revived long-running arguments in international economics between those promoting global trade agreements and those favoring regional approaches. But in many ways this has been the wrong debate, especially for the world’s smallest, poorest, and most geog...

In the fast globalizing world, the combined effect of small market size, weak institutions, low human development, worsening terms of trade, persistent conflict and poor investment climate, pan-African cooperation as enshrined in the African Economic Community and NEPAD has been designated by African governments as the best overall framework for accelerating African development in the 21 centur...

Motivated by the proliferation of free trade agreements (FTAs) in Asia over the last decade, this paper studies the challenges faced by the Asian “noodle bowl”—overlapping, multiple trade rules, regulations, and standards in Asia—in the process of regional and global trade integration. The paper first highlights the importance of trade and investment linkages among Asian economies that have for...

The paper analyzes the effects of increasing capital market integration on production and market structures, trade and capital flows as well as national and global welfare. In order to facilitate the analysis of the integration process, three stages of capital market integration are defined. First, capital is internationally immobile, secondly, capital is partly mobile, and finally perfect capi...

Using a world trade model with India subdivided into states, the paper examines how regional disparities are affected by domestic inter-state trade as well as international trade. According to the analysis, international liberalisation promotes decentralisation and convergence, not divergence, so trade is not to blame for India’s growing regional disparities. High economic growth within India m...

Regionalism is an integral part of the broader economic policy reforms that have occurred in the Western Hemisphere over the last decade. This chapter examines the dynamic effects of regional integration arrangements in the Western Hemisphere on the U.S. economy, including U.S. agriculture and agricultural trade, by taking into account changes in saving-investment and capital accumulation. Thro...