This paper gives an overview of the economics of the Kyoto Protocol, the agreement that was adopted unanimously by government negotiators in December 1997 to tackle the threat of climate change. The Protocol was adopted against a background of hugely disparate perspectives concerning the urgency of action, the costs of limitations, and the appropriate instruments. In the end, the view of the US...

As the chances of a successful conclusion to the Doha Round of trade liberalization under the WTO become increasingly problematic, so the pace of negotiating local free trade agreements (FTAs) is increasing. According to the WTO report, countries in the Asia-Pacific region are “consolidating their drive towards regionalism at an accelerated pace”. After the trade agreements between China an...

The paper focuses on regional trade agreements and economic co-operation and develops a new appropriate approach to study their impact on growth and trade. The approach is based on an endogenous trade-growth theory and novelly specified in an economic integration (expenditure) framework which is the conceptual foundation of regional trade agreements. Importantly, it also appropriately takes int...

The best known equilibrium strategies of multiplayer bargaining define that the agreement is established at the first moment. In this paper two new subgame perfect Nash equilibria strategies are proposed, one in which the agreement moment is delayed for T > 1 periods and one other in which the bargaining proposals proceed endlessly. Journal of Economic Literature Classification Numbers: C72, C78.

This paper examines the relationship between regional economic integration and FDI in North America, where two RIAs have been established over the past decade: a bilateral free trade agreement between Canada and the U.S. (CUSTA) and a trilateral agreement (NAFTA) incorporating Mexico as well. The North American experiences suggest substantially more modest impacts of regional trade agreements o...

An important theory of international cooperation asserts that governments comply with international law because of the reputational costs incurred by reneging on public agreements. Countries that sign binding international agreements in the realm of monetary relations signal their commitment to an open economic system, which should reassure international market actors that the government is com...