The Welfare Implications of Trading Blocs among Countries with Different Endowments / Antonio Spilimbergo, Ernesto Stein.

Format:

Book

Author/Creator:

Spilimbergo, Antonio.

Contributor:

National Bureau of Economic Research.

Stein, Ernesto.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5472.

NBER working paper series no. w5472

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1996.

Summary:

In this paper, we present a model where trade is motivated both by preference for variety and comparative advantages. We use this framework to analyze the welfare implications of trading blocs among countries with different endowments with and without transportation costs. In this framework, we address the following issues: a) the welfare implications of the consolidation of the world into a few trading blocs; b) the different incentives that rich and poor countries have in choosing their partners in trade arrangements; c) whether the welfare consequences of continental preferential trade arrangements depend on the relative endowments.

Notes:

Print version record

March 1996.