Claimed benefits of RTAs
1. economies of scale, from the enlarged market over time. The goal of regional cooperation is to lower all trade barriers in order that each economy can fully pursue its comparative advantage. This will stimulate trade and draw in investment. 2. the political economy argument: a group of small countries may be able, in the international arena, to act as a large entity in articulating common interests, especially in multilateral negotiations. 3. the regional infant industry argument. Small developing countries bind together their economies, allowing substantial trade diversion, for the purpose of fostering industrialization. Some argue that the real benefit of integrating trade is spillover into areas in which unilateral action would be more costly than cooperative. These areas include infrastructure, education, and environmental projects. Adapted from the paper 'The future direction of South-South Trade and Cooperation' by Barbara R. Kotschwar, Johns Hopkins School for Advanced International Studies
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| Format: | News Item biblioteca |
| Language: | English |
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Technical Centre for Agricultural and Rural Cooperation
2001
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| Online Access: | https://hdl.handle.net/10568/46220 https://hdl.handle.net/10568/99597 |
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