Open Regionalism in a World of Continental Trade Blocs

Author/Editor:

Jeffrey A. Frankel ; Shang-Jin Wei

Publication Date:

February 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Continental trade blocs are emerging in many parts of the world almost in tandem. If trade blocs are required to satisfy the McMillan criterion of not lowering trade volume with outside countries, they have to engage in a dramatic reduction of trade barriers against non-member countries. That may not be politically feasible. On the other hand, in a world of simultaneous continental trade blocs, an open regionalism in which trade blocs undertake relatively modest external liberalization can usually produce Pareto improvement.

Series:

Working Paper No. 1998/010

Subject:

Notes:

Also published in Staff Papers, Vol. 45, No. 3, September 1998.

English

Publication Date:

February 1, 1998

ISBN/ISSN:

9781451842661/1018-5941

Stock No:

WPIEA0101998

Pages:

17

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