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| Volume 7, No. 2,
August 2008 |
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Is Bilateralism Consistent with
Global Free Trade? |
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| Daniel E.
May |
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Business School, University of
Wolverhampton, U.K. |
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| Abstract |
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Some studies show
that bilateralism is consistent with global free trade under
pairwise stability. By using an alternative stability concept we
find that this is not always the case. Nonetheless, a system of
transfers could help to stabilize this condition. |
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Key words:
bilateralism; global free trade; network equilibrium |
| JEL
classification:
F12; F13 |
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