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Strategic Regional Integration

Author

Listed:
  • Kjetil Bjorvatn

    (NHH Norwegian School of Economics)

  • Nicola Daniele Coniglio

    (Università degli Studi di Bari "Aldo Moro")

  • Hiroshi Kurata

    (Tohoko Gakuin University)

Abstract

We analyze the impact of globalization on the incentive to strengthen regional integration. In a simple three-country oligopolistic trade model, we demonstrate that increased external competitive pressure may induce governments, ináuenced by producer interests, to lower intra-regional trade costs in order to mitigate the effects of external competition on local businesses.

Suggested Citation

  • Kjetil Bjorvatn & Nicola Daniele Coniglio & Hiroshi Kurata, 2016. "Strategic Regional Integration," SERIES 07-2016, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Nov 2016.
    • Handle: RePEc:bai:series:series_wp_07-2016
    as

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    File URL: http://www.seriesworkingpapers.it/RePEc/bai/series/SERIES_WP_07-2016.pdf
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    References listed on IDEAS

    as
    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Bond, Eric W. & Syropoulos, Constantinos & Winters, L. Alan, 2001. "Deepening of regional integration and multilateral trade agreements," Journal of International Economics, Elsevier, vol. 53(2), pages 335-361, April.
    3. Freund, Caroline, 2000. "Multilateralism and the endogenous formation of preferential trade agreements," Journal of International Economics, Elsevier, vol. 52(2), pages 359-376, December.
    4. Richard E. Baldwin, 2011. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocks on the Path to Global Free Trade," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 2, Edward Elgar Publishing.
    5. Giovanni Maggi & Andres Rodriguez-Clare, 1998. "The Value of Trade Agreements in the Presence of Political Pressures," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 574-601, June.
    6. Solís, Mireya, 2013. "Business advocacy in Asian PTAs: a model of selective corporate lobbying with evidence from Japan," Business and Politics, Cambridge University Press, vol. 15(1), pages 87-116, April.
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    Cited by:

    1. J. Muzurura, 2019. "Foreign Direct Investment in Zimbabwe: The Role of Uncertainty, Exports, Cost of Capital, Corruption and Market Size," The Economics and Finance Letters, Conscientia Beam, vol. 6(1), pages 9-24.

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    More about this item

    Keywords

    Regional integration; Globalization; Cournot competition;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F6 - International Economics - - Economic Impacts of Globalization

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