We analyze the impact of globalization on the incentive to strengthen regional integration. In a simple three-country oligopolistic trade model, we demonstrate that increased external competitive pressure may induce governments to lower intra-regional trade costs in order to mitigate the effects of external competition on local businesses.

Strategic Regional Integration

Nicola Daniele Coniglio;
2019

Abstract

We analyze the impact of globalization on the incentive to strengthen regional integration. In a simple three-country oligopolistic trade model, we demonstrate that increased external competitive pressure may induce governments to lower intra-regional trade costs in order to mitigate the effects of external competition on local businesses.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11586/255402
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