Natural Trading Blocs

• 영문명: Natural Trading Blocs: A Closer Look
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Volker Nitsch
• 간행물 정보: 『Journal of Economic Integration』제12권 제4호, 433~455쪽, 전체 23쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 1997.12.31

영문 초록

It is occasionally argued that the formation of trading blocs between geographically proximate countries should be encouraged because positive welfare effects are more likely to outweigh negative welfare effects. This paper presents a simple differentiated products model that allows to test whether the formation of a ‘natural’ trading bloc, first, is indeed increasing world welfare and, second, is welfare-superior to the formation of an ‘unnatural’ trading bloc. Simulations show that, while the removal of trade barriers always improves world welfare, ‘unnatural’ bloc formation may, under some conditions, be welfare-superior to the formation of trading blocs along ‘natural’ lines. The concept of ‘natural’ trading blocs is therefore a misguided prescription. (JEL Classification: F15)

목차

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Welfare Implications