This paper develops a methodology for trade policy analysis of costs and benefits of alternative regional integration scenarios. The methodology is based on the disaggregated gravity equation, which is applied to calculate the impact of the EU enlargement on integration strategies of non-member...

This paper utilizes a specific factor model where rewards to labor and capi - tal, and employment are determined by efficient bargaining between entrepre - neurs and workers in each sector. Union threat points arise endogenously since workers’ outside opportunities in one sector depend on the...

We apply the gravity model to examine the effects of the Andean Community and Mercosur on both intra-regional and intra-industrial trade in the period 1980- 1997. After accounting for size distance and competitiveness effects, the Andean Community preferential trade agreements had a significant...

Recent literature has emphasized the importance of transaction costs and infrastructure in explaining trade, access to markets, and regional cooperation under globalization. For most Asian countries, transaction costs are a greater barrier to trade integration than import tariffs. By estimating...

This paper examines the trading pattern of Bay of Bengal Initiative for Multi- Sectoral Technical and Economic Cooperation (BIMSTEC) by employing an augmented gravity model. The econometric specification followed Egger (2000, 2002), Baltagi et al. (2003) and Serlenga and Shin (2007). Diagnostic...

This study estimates the trade potential for India using an augmented Gravity model and then attempts to determine the importance of trade remedies. Based on the panel data, this Gravity model is the first-ever attempt to estimate India’s trade potential in the pre- and post- global economic...

This study extends the gravity model to include a new measure of the trading partners’ location relative to other countries. The proposed measure is close in spirit to the theory of gravity, since it is based on the concept of the world trade center. The measure is statistically significant...

This paper empirically assesses the integration of ASEAN with the European Union (EU) from an ASEAN-European Union trade model, and investigates their untapped trade potential. For the observation period of 1996 to 2008, the ASEANEU trade gap between the potential trade and the actual trade...

We investigate the location determinants of Japanese multinationals in Poland using a regional data set from 1991 to 2001. Special attention is placed on the geographically targeted investment incentives (Special Economic Zones, SEZs) that were created during this period. Controlling for a more...

Many believe that an important benefit from membership in international organizations is the lessening of political constraints to domestic reforms which would, ultimately, generate greater trade openness, FDI inflows and economic growth. These ideas have received limited empirical testing. This...