Trade policies in Africa have been studied extensively. Most of the works in this field, however, take the form of overall appraisal of such policies and their effects on the development of the continent as a whole. The aim of the present study is slightly different. It tries to explore and...

Why are trade agreements regional? I address this question in a model of oligopoly featuring product variety. Tariffs have the effect of manipulating a country's terms of trade and shifting profits towards the domestic market at the expense of foreign trade partners. Countries endogenously form...