The regionalization of the world economy

Regional economic arrangements such as free trade areas (FTAs), customs unions, and currency blocs, have become increasingly prevalent in the world economy.

Both pervasive and controversial, regionalisation has some economists optimistic about the opportunities it creates and others fearful that it may corrupt fragile efforts to encourage global free trade.

Including both empirical and theoretical studies, this volume addresses several questions: Why do countries adopt FTAs and other regional trading arrangements?

To what extent have existing regional arrangements actually affected patterns of trade?

What are the welfare effects of such arrangements?