Using both a gravity model to consider the natural trading bloc hypothesis, and simulation using a CGE model to make welfare estimates, we examine the potential effect of a subset of the new RTA proposal in the APEC region. In broad terms the two approaches appear consistent in their ability to...

Using both a gravity model to consider the natural trading bloc hypothesis, and simulation using a CGE model to make welfare estimates, we examine the potential effect of a subset of the new RTA proposal in the APEC region. In broad terms the two approaches appear consistent in their ability to...

This paper seeks to explore aspects of a possible scenario of parallel 'trade blocs' using a computable general equilibrium (CGE) model to estimate the effects of an East Asian 'trade bloc' and the FTAA on each other, and on the rest of the world.