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The Economics of Regional Trading Arrangements$
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Richard Pomfret

Print publication date: 2001

Print ISBN-13: 9780199248872

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199248877.001.0001

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The New Regionalism

The New Regionalism

Chapter:
(p.207) 10 The New Regionalism
Source:
The Economics of Regional Trading Arrangements
Author(s):

Richard Pomfret (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0199248877.003.0010

Analyses the new regionalism that emerged in the mid‐1980s. By downplaying the significance of trade diversion and emphasizing scale‐based and pro‐competitive benefits of integration, the new regionalism had a more positive vision of RTAs than mainstream customs union theory had. Section 1 introduces economies of scale and imperfect competition. Section 2 analyses non‐tariff barriers to trade. Section 3 covers ‘new areas’ of foreign investment, competition policy, and monetary integration, which had not featured in mainstream customs union theory. Section 4 deals with rules of origin, which had emerged as a major trade policy issue in the 1980s and 1990s.

Keywords:   customs union, economies of scale, foreign investment, imperfect competition, monetary integration, non‐tariff barriers, regional trading arrangement, regionalism, rules of origin, trade diversion

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