aFaculty of Business, Brock University, St. Catharines, Ontario, Canada L2S 3A1;bDepartment of Political Science, Indiana University, Bloomington, IN 47405, United States
Abstract:
We examine the roles of regional trade agreements (RTAs) not only in regionalization processes but also in globalization of trade. Results from various specifications of the gravity equation model confirm that a country can noticeably increase directional trade through diplomatic relations as well as through membership.