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Open Regionalism and World Welfare

Author

Listed:
  • Sang-Seung Yi

    (Dartmouth College)

Abstract

The recent resurgence of regionalism has raised concerns that regionalism may undermine the spirit of global free trade. This paper examines a simple four-country model of welfare-maximizing customs-union formation in which the number of customs union: and their sizes are endogenously determined. Customs unions are stepping stones toward global free trade under the open membership (open regionalism) rule. However, customs unions can be (and typically are) stumbling blocks against global free trade under exclusive membership rules, such as the unanimous regionalism rule.

Suggested Citation

  • Sang-Seung Yi, 1996. "Open Regionalism and World Welfare," Eastern Economic Journal, Eastern Economic Association, vol. 22(4), pages 467-475, Fall.
    • Handle: RePEc:eej:eeconj:v:22:y:1996:i:4:p:467-475
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume22/V22N4P467_475.pdf
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    References listed on IDEAS

    as
    1. Sang-Seung, Yi, 1996. "Endogenous formation of customs unions under imperfect competition: open regionalism is good," Journal of International Economics, Elsevier, vol. 41(1-2), pages 153-177, August.
    2. Richard Baldwin, 1993. "A Domino Theory of Regionalism," NBER Working Papers 4465, National Bureau of Economic Research, Inc.
    3. Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-519, September.
    4. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Islam, Sulequl, 2003. "Expansions of the European Union and the NAFTA: Implications for New and Non-Member countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(2).
    2. Carraro, Carlo & Buchner, Barbara, 2005. "Regional and Sub-Global Climate Blocs. A Game-Theoretic Perspective on Bottom-up Climate Regimes," CEPR Discussion Papers 5034, C.E.P.R. Discussion Papers.
    3. Sunandan Ghosh, 2019. "Enlargement Decisions of Regional Trading Blocs with Asymmetric Members," Working Papers id:12992, eSocialSciences.
    4. Carlo Carraro, 2006. "Incentives and Institutions. A Bottom-up Approach to Climate Policy," Working Papers 2006_49, Department of Economics, University of Venice "Ca' Foscari".

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    More about this item

    Keywords

    Customs Union; Free Trade; Trade; Welfare;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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