Customs Unions Between Patient and Impatient Nations Reshape Global Trade
The article looks at how regional agreements affect global trade when countries are different. They studied a model with three countries trading three goods, where the only difference between nations is how patient they are. The study found that when a patient and an impatient country form a customs union, it impacts multilateral trade deals. The results show that the impact of regional agreements on global trade depends on the patience levels of the countries involved.