Wednesday, June 3, 2015

Regional Trade Agreements

The Economist has a good article on regional trade agreements as opposed to global trade agreements.  From the article they talk about the impact that a regional trade agreement can have on trade diversion (lower tariffs for some countries as opposed to others).  I go over exactly this in Global Economics and Business as well as the trade creation effect.  The evidence is for trade creation but does not seem to bear out the trade diversion effect.

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