This paper analyzes the impact of regional integration on outside countries as well as member countries, using a simple model with product differentiation and increasing returns to scale. Major findings include: (I) economic integration surely benefits the member contries but definitely worsens...

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 the impact of regionalism on trade flows are derived: (i) the impact of regional integration is stronger, when the degree of...