Economic Analysis of Regional Trading Arrangements

A feature of the global economy over the last half-century has been the proliferation of regional trading arrangements (RTAs) and the ongoing debate over the relationship between regionalism and multilateralism. The economic analysis of regionalism has increasingly come to focus on fundamental elements of international economics.

The economic analysis of RTAs evolved substantially following Viner's key insight, which highlighted the possibility of trade diversion. During the 1980s and 1990s ...