Frankel, Jeffrey A.; Stein, Ernesto; Wei, Shang-Jin - 2021
Using the gravity model, we find evidence of three continental trading blocs: the Americas, Europe and Pacific Asia … Preferential Trading Arrangements, despite the GATT's Article 24. The super-natural zone occurs when the regionalization of trade … policy exceeds what is justified by natural factors. Estimates suggest that trading blocs like the current EC are super-natural …