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
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2019-01-01
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.File in questo prodotto:
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Bjorvatn&Coniglio&Kurata2019 book chapter.pdf
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