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On the size and number of preferential trading arrangements

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  • Soamiely Andriamananjara

Abstract

This paper uses a multi-country political economy model to investigate the possibility of achieving global free trade through the expansion of Preferential Trading Arrangements (PTAs). It is shown that bloc expansion would result in global free trade if blocs have an open membership. However, that would not be the case if membership were selective: at some point, the members of the bloc would stop accepting new members and this would lead to the creation of a second bloc. The likelihood of such a second bloc would make the members of the first bloc choose a larger bloc size than they would have chosen if only one bloc was allowed to form.

Suggested Citation

  • Soamiely Andriamananjara, 2001. "On the size and number of preferential trading arrangements," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 11(3), pages 279-295.
    • Handle: RePEc:taf:jitecd:v:11:y:2001:i:3:p:279-295
    DOI: 10.1080/09638190210151419
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    References listed on IDEAS

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    1. Bagwell, Kyle & Staiger, Robert W, 1997. "Multilateral Tariff Cooperation during the Formation of Free Trade Areas," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 291-319, May.
    2. Kyle Bagwell & Robert W. Staiger, 1993. "Multilateral Tarriff Cooperation During the Formation of Regional Free Trade Areas," NBER Working Papers 4364, National Bureau of Economic Research, Inc.
    3. Bagwell, Kyle & Staiger, Robert W., 1993. "Multilateral Tariff Cooperation During The Formation Of Regional Trade Areas," SSRI Workshop Series 292700, University of Wisconsin-Madison, Social Systems Research Institute.
    4. Srinivasan, T-N, 1996. "Regionalism and the World Trade Organization : Is Non-Discrimination Passe?," Papers 767, Yale - Economic Growth Center.
    5. Arvind Panagariya & Jagdish Bhagwati, 1996. "The Economics of Preferential Trade Agreements," Books, American Enterprise Institute, number 51856, September.
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    Cited by:

    1. L Alan Winters, 2015. "The WTO and Regional Trading Agreements: Is it all over for Multilateralism?," RSCAS Working Papers 2015/94, European University Institute.

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