This paper employs a gravity model to assess the role of ex-post regional trade agreements and customs unions on patterns. The primary contribution this conventional modal is embed determine whether they have significantly affected bilateral trade. secondary reveal intra inter-union/agreement patterns among economic unions. Three dummy variables were also introduced model. Results showed slight...

In practice, Free Trade Agreements (FTAs) vastly outnumber Customs Unions (CUs). Nevertheless, the literature traditionally views CUs as optimal for members because CU members coordinate external tariffs. I show that a dynamic FTA flexibility benefit can help explain the prevalence of FTAs: individual FTA members have the flexibility to form their own future FTAs whereas CU members must jointly...

We re-address the trade-off between centralized and decentralized decision making of local policies when policy makers are subject to capture. In particular, we consider the case where lobbies have private information about their ability to influence. We find a new informational effect in the political game under centralized structures that gives the policy maker additional bargaining power aga...

This paper examines the welfare implications of an existence of free trade agreements (FTAs) and customs unions (CUs) in the GATT system, in the presence of cross-foreign ownership among countries. In particular, two GATT regimes are analyzed: a pure GATT regime without any regional free trade agreements, and modified GATT regime with either an FTA or a CU. This paper argues that, when foreign ...

We examine the interaction between trade in goods and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by econometrics involving import patterns of 21 OECD countries. This points to significant linkages between effective market-access conditions for goods and the structure of the service sector. ...

This paper surveys the recent literature on the endogenous formation of economic coalitions, in particular, the partition function literature that allows for externalities across coalitions. Various economic coalitions are classified either as coalitions with positive externalities (output cartels, R&D coalitions with spillovers, public-goods (environmental) coalitions, free-trade areas) or as ...