Preface -- 1 Introduction -- 2 The Theory of Trade Agreements and Economic Integration, Size of Economics, Trade Costs and Economic Welfare -- 3 An Empirical Analysis of the Size Characteristics of Economies -- 4 An Empirical Analysis of the Impact of Trade Costs on Trade Flows and Welfare:...

The purpose of this paper is to analyse the political economy of preferential trade agreements based on a sequential non-cooperative Stackelberg political game between a large economy and a small one, in which the political dispute of rival lobby groups defines the unilateral stance of both...