Is Regionalism Viable? A Case for Global Free Trade |
| |
| Authors: | Reza Oladi Hamid Beladi |
| |
| Affiliation: | Utah State University, Logan;
University of Texas at San Antonio, San Antonio |
| |
| 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. |
| |
| Keywords: | |
|
|
