Jump to ContentJump to Main Navigation
Show Summary Details
In This Section

Global Economy Journal

The Official Publication of the International Trade and Finance Association

Ed. by Sawyer, W. Charles

4 Issues per year


CiteScore 2016: 0.22

SCImago Journal Rank (SJR) 2015: 0.265
Source Normalized Impact per Paper (SNIP) 2015: 0.437

Online
ISSN
1553-5304
See all formats and pricing
In This Section
Volume 11, Issue 1 (Mar 2011)

Issues

Regionalism as a Building Block for Multilateralism

Bernhard Herz
  • 1University of Bayreuth,
/ Marco Wagner
  • 2The German Council of Economic Experts,
Published Online: 2011-03-22 | DOI: https://doi.org/10.2202/1524-5861.1676

The well-known question whether regional trade agreements (RTAs) and the multilateral trading system (MTS) are “strangers, friends, or foes” (Bhagwati and Panagariya, 1996) has gained new importance with the widespread proliferation of RTAs in recent years. Based on an extensive data set which covers most of world trade over the past 60 years and about 240 regional trade agreements, we analyze the relationship between RTAs and the MTS by combining the gravity model framework with vector auto-regression analysis. Impulse-response-functions robustly suggest that multilateral trade liberalization responds in a significantly positive way to regional trade liberalization. We also find robust evidence that RTA liberalization Granger-causes GATT/WTO liberalization. Thus, our results indicate that RTAs do not undermine the MTS but serve as building blocks to multilateral trade liberalization.

Keywords: regionalism; multilateralism; trade agreement; gravity model

About the article

Published Online: 2011-03-22



Citation Information: Global Economy Journal, ISSN (Online) 1524-5861, DOI: https://doi.org/10.2202/1524-5861.1676. Export Citation

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Christian Drescher and Bernhard Herz
Applied Economics, 2015, Page 1
[2]
Germán A. de la Reza
Problemas del Desarrollo, 2015, Volume 46, Number 181, Page 185

Comments (0)

Please log in or register to comment.
Log in