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International Trade and Economic Development$
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Rajat Acharyya and Saibal Kar

Print publication date: 2014

Print ISBN-13: 9780199672851

Published to Oxford Scholarship Online: September 2014

DOI: 10.1093/acprof:oso/9780199672851.001.0001

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Regional Trading Arrangements as Development Strategy

Regional Trading Arrangements as Development Strategy

(p.207) 9 Regional Trading Arrangements as Development Strategy
International Trade and Economic Development

Rajat Acharyya

Saibal Kar

Oxford University Press

Over the last two decades there has been an unprecedented proliferation of regional trading arrangements and free trade agreements between countries both within and across continents. This chapter evaluates this bilateral and regional approach to trade as a development strategy for countries, and examines the conflict and complementarity between this regional approach and the WTO's multilateral approach. A detailed analysis of the static welfare gains and the prevailing ideas about regionalism, of the causes of contemporary regionalism and the dynamic gains and formation of regional trade bloc are available in this chapter. Finally, an overview of the regionalism and multilateralism at the core of the WTO negotiations help to synthesize the main arguments forwarded in this chapter.

Keywords:   trading blocs, regionalism, trade creation, trade diversion, WTO

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