The evolution of free trade networks
نویسندگان
چکیده
This paper considers the evolutionary dynamics of a free trade agreement (FTA) network formation game among N countries. We first explore the static model introduced by Goyal and Joshi (2006) and precisely characterize the set of pairwise stable FTA networks. Then, we develop a dynamic model under random perturbations and identify long-run outcomes to remove prediction uncertainty inherited from static analysis. The results show that both partial free trade and global free trade will result when there are only three countries. However, when more countries are involved, only the complete FTA network emerges. & 2013 Elsevier B.V. All rights reserved.
منابع مشابه
Evolution of the Asia-Pacific Trade Architecture: Stocktake and Future Outlook
APEC Study Centre, University of Auckland, Auckland, New Zealand    Abstract:  One of the key sets of questions underlying Asia Pacific economic cooperation over the last decade has been over the nature and form of the regional trade architecture that would gradually emerge from the turmoil of the Asia-Pacific ânoodle bowlâ of bilateral and plurilateral FTAs, and how that architecture...
متن کاملInvestigating the situation and evolution of carpet production and trade in Sultan abad during the Qajar period
This article has no abstract.
متن کاملInvestigation and Comparison of the Welfare and Trade Effects of Iran Free Trade Agreement with Turkey, India and Pakistan countries: Computable General Equilibrium Model
Today, preferential and free trade agreements play an effective role in expanding trade in goods and services at the international level and as common practice in business planning and facilitating trade. The purpose of this article is to examine the trade and welfare effects of Iranchr('39')s free trade agreement with Turkey, India and Pakistan. For this purpose, using the Computable General E...
متن کاملStability of International Production Networks: Is East Asia Special?
Trade relationships built through production chains appear to be lasting due to relation-specific nature of the transactions, compared with the usual transactions of goods sold on the open market. This paper aims to verify such stability of international production networks at the global level, with special emphasis on intra-East Asian trade. A series of survival analyses provide an evidence su...
متن کاملThe Gains of Economic Integration: Substantive Evidence for an Australia-Korea Free Trade Agreement
Abstract On 6 December 2006, Australia and Korea announced a joint study on a possible Australia-Korea free trade agreement (AKFTA) to promote trade and economic relations between the two countries. The paper provides empirical evidence on the possible gains and their transmission mechanism from this agreement. Significantly, it uses a new economic policy modelling approach, the endogenous grav...
متن کامل