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...

This paper analyzes the e¤ects of the formation of a regional trade agreement on the level and nature of multinational …rm activity. We examine aggregate data that captures the response of U.S. multinational …rms to the formation of the ASEAN free trade agreement. Observed patterns guide the development of a model in which heterogeneous …rms from a source country decide how to serve two foreign...

as regional integration agreements (RIAs)—is one of the major international relations developments of recent years. Most industrial and developing countries in the world are members of a regional integration agreement, and many belong to more than one: more than one-third of world trade takes place within such agreements. 1 The structure of regional agreements varies hugely, but all have one th...

The paper analyzes how regional financial and trade integration have affected output fluctuations in East Asia. It also controls for possible effects of specialization patterns and exchange rate policies. The findings hint at a convergent direct effect of trade and FDI integration on output fluctuations. Real and financial integration also have sizable indirect effects on output fluctuations th...

Economic Cooperation Organization (ECO), based on regional and multicultural cooperation, has focused on the improvement of living standards, collective as well as individual prosperity of people and economic development of member’s states. Since February 1992 ECO has been expanded to ten as the result of collapse of the Soviet Union. Of course, gas and oil are very important factors in this re...

APEC Study Centre, University of Auckland, Auckland, New Zealand     Abstract:   One of the key sets of questions underlying Asia Pacific economic cooperation over the last decade has been over the nature and form of the regional trade architecture that would gradually emerge from the turmoil of the Asia-Pacific “noodle bowl” of bilateral and plurilateral FTAs, and how that architecture...

Negotiations among nations on policies to promote international economic integration have widened in recent years to cover new issues; for example, foreign direct investment rules, policies to promote competition, the international movement of labor, the environment and monetary union. In these negotiations, a consensus among the parties negotiating is usually lacking and many of these negotiat...

In models of economic geography, plant-level scale economies and trade costs create incentives for spatial agglomeration of production into a manufacturing core and agricultural periphery, creating regional income differentials. We examine tax competition between national governments to influence the location of manufacturing activity. Labour is imperfectly mobile and governments impose redistr...