Market Integration, Regionalism and the Global Economy

Demonstrates how new techniques of economic analysis can be used to study the process of regional integration.

In a world of trade distortions and nonlinearities, regional integration may not always foster global integration and convergence. The key is good economic policy based on sound analysis. Using new techniques of economic analysis, this volume studies the process of regional integration and reaches some important analytical and political conclusions.A study of the nature and the policy implication of changes in the global economy in relationship to the process of regional integration, conducted using the newest techniques of economic analysis. The principal message drawn from these analytical and policy insights is that in a world characterised by trade distortions and nonlinearities, regional integration may or may not foster global integration, and may or may not advance regional or global convergence. The key is good economic policy based on sound economic analysis. Part one of the volume covers three international trade policy issues: regionalism and multilateralism; the political economy of trade policy; and trade income inequality. Part two (chapters 7-11) focuses on three 'domestic' problems faced by regional groups: labour migration; exchange rate arrangements; and real convergence.