This paper examines the theoretical arguments and historical evidence about whether regionalism undermines the multilateral trading system. It first considers how to define multilateralism and then surveys over 60 recent contributions to the literature. It classifies theoretical models by four...

The paper applies a gravity model to 1980-1996 annual non-fuel imports data for 58 countries to quantify the effects of recently created or revamped PTAs on trade. We modify the usual gravity equation to identify separate effects of PTAs on intra-bloc trade, members' total imports and their...

Theoretical and empirical research suggests that import competition within European markets imposes a major constraint on domestic firms's price-cost margins. The programme for the completion of the European Community's (EC) internal market by 1992 is largely based on the effects expected from a...