The authors analyze the welfare effects of regional integration in a model of endogenous protection. They show that introducing preferential trading leads to an increase in protection against countries outside the preferential trading area. Moreover, the important Meade result of preferential...

Protectionism and industrial regulation are two topics in which the interplay of politics and economics is so strong that one wonders why the intellectual merger between the two approaches in the New Political Economy has taken so long. After describing the emergence of the state in Western...