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This paper studies the economic impact of regionalism under the realistic assumptions of constant tariffs and asymmetric bloc formation. Extending the Krugman framework, we decompose the impact into several components, each of which has a clear economic implication. Economic integration...
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This paper analyzes the economic impact of regional integration on agricultural trade. Using a simple Krugman-type model with tariff distortions, two propositions on the impact of regionalism on trade flows are derived: (i) the impact of regional integration is stronger, when the degree of...
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