This study uses an augmented gravity model to capture the effect of regional economic integration on Foreign Direct Investment (FDI) flows in the cases of the EU, NAFTA, MERCOSUR, and ASEAN. Three important conclusions emerge: (i) regional integration has had a positive and significant effect on...

In this paper, the authors employ a three-country, two-good, general equilibrium model to analyze bilateral quota wars. It is shown that the presence of a third country or a number of countries that trade freely leads to fundamentally different results of retaliation: bilateral quota wars need...

In recent years, Asian policymakers have considered the possibility of promoting closer financial integration and, possibly, monetary union. This paper considers the economics of the decision to form a currency union in East Asia using the European experience as a benchmark. We also compare the...

With the spread of regional and bilateral trade arrangements, there is always concern about the discriminatory impact on non-members. For example, the establishment of NAFTA deprived the Caribbean Basin of its preferential status vis-a-vis Mexico in the US market. Or alternatively, the...