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Article
Is Regionalism Viable? A Case for Global Free Trade
Review of International Economics
  • Reza Oladi, Utah State University
  • H. Beladi
Document Type
Article
Publication Date
1-1-2008
Abstract

We assume an imperfectly competitive world with n commodities and address the question of whether or not (regional) trade blocs are viable. To answer this fundamental question, we use a notion of stability, offered by Greenberg (1990), and show that regional trade blocs are not viable as they are not stable. On the other hand, we demonstrate that a global trade bloc is viable. Therefore, our results provide theoretical support for advocates of global free trade.

Citation Information
“Is Regionalism Viable? A Case for Global Free Trade,” (with H. Beladi), Review of International Economics 16, 2008: 293-300.