REGIONAL ECONOMIC INTEGRATION

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Geographically discriminatory trade policy is the defining characteristic of a regional
integration agreement (RIA).  Traditionally three types of RIAs are distinguished.  A free
trade area (FTA) is an RIA formed by removing tariffs on trade among nations that are FTA
members without changing tariffs on imports from non-members.  A customs union (CU) is
an FTA where members' tariff structures on the extra-CU trade are equalized.  A common
market (CM) permits free movement of factors as well as goods and services between states.
i


Contents

1 Introduction
1.1 Definitions  
1.2  Outline
  1.3   A framework for welfare analysis
2.  Allocation  effects  
  2.1  Perfect competition and constant returns  
  2.2  Market structure, scale economies and imperfect competi
3. Accumulation effects
  3.1  Medium-term effects: Investment creation and diversion
3.2 Long-term growth effects
4. Location effects  
4.1 Location of firms
  4.2  Linkages and agglomeration
4.3 Labour mobility
  4.4  Integration and industrial agglomeration
5. Empirics
  5.1  The antimonde problem
5.2  Econometric evidence
  5.3   Empirical evaluations of NAFTA and EC92
6. Further issues
  6.1    Multilateral, unilateral and regional liberalization
      What is best for a single country?  
      Hub and spoke and concentric circle arrangemen
6.2 Political economy issues
   G&H paper and others.
  6.3  Regionalism and the multilateral trading system
      What determines the size of FTAs and CUs?
   Is Bilateralism Bad?
      Building blocks or stumbling blocs?

References

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关键词：Integration Economic regional econom ration Economic Integration regional

R Baldwin & A Venables (2004)
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