000			02488cam a22003377 4500
001			w5431
003			NBER
005			20211020114200.0
006			m o d
007			cr cnu||||||||
008			210910s1996 mau fo 000 0 eng d
100	1		_aFrankel, Jeffrey A. _910692
245	1	0	_aRegional Trading Arrangement: _bNatural or Super-Natural? / _cJeffrey A. Frankel, Ernesto Stein, Shang-Jin Wei.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1996.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w5431
500			_aJanuary 1996.
520	3		_aThis paper summarizes recent research by the authors on the effects of free trade areas (FTAs). Within our model, which emphasizes inter-continental transport costs, several conclusions arise. (1) FTAs are likely to be detrimental over a moderate range of parameter values, even if drawn along natural regional lines. (2) A small margin of preferences for neighbors is beneficial. (3) Optimal preferences depend on the parameters, particularly on transport costs. (4) If preferences are raised further, they enter the zone of negative returns to regionalization, and eventually the super-natural zone, where welfare is lower than under the MFN status quo. Estimates from the gravity model suggest the world system may already be in the super-natural zone. The core model leaves out many factors. But we have pursued a variety of extensions by now. Perhaps the two most important are generalizing the highly stylized model of trade (to include factor endowments), and relaxing the assumption that the inter-bloc level of tariffs remains fixed. In the latter case, allowing tariffs to be endogenous yields a much more optimistic outlook for the effects of FTAs.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aF1 - Trade _2Journal of Economic Literature class.
700	1		_aStein, Ernesto. _921149
700	1		_aWei, Shang-Jin.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w5431.
856	4	0	_uhttps://www.nber.org/papers/w5431
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w5431
942			_2ddc _cW-PAPER
999			_c342910 _d301472