abstract on 6 december 2006, australia and korea announced a joint study on a possible australia-korea free trade agreement (akfta) to promote trade and economic relations between the two countries. the paper provides empirical evidence on the possible gains and their transmission mechanism from this agreement. significantly, it uses a new economic policy modelling approach, the endogenous grav...

The negotiation and construction of a Regional Trade Agreement (RTA) bears the elements of its future success. The agreement identifies the relative strength of the countries involved and the long-term internal functioning of the agreement. A comparison between the NAFTA and Mercosur RTAs highlights this concept. NAFTA appears to indicate the clear range of possibilities to the US, Canada and M...

Cooperation in the face of moral hazard is a critical factor in economic development. Existing research on institutional support for cooperation has primarily focused on the role of contract enforcement in limiting the incentives for cheating. In contrast, we focus on the need for a social safety net to permit extensive cooperation. Starting from a basic prisoner’s dilemma model, we introduce u...

Abstract On 6 December 2006, Australia and Korea announced a joint study on a possible Australia-Korea free trade agreement (AKFTA) to promote trade and economic relations between the two countries. The paper provides empirical evidence on the possible gains and their transmission mechanism from this agreement. Significantly, it uses a new economic policy modelling approach, the endogenous grav...