Regionalism Fails to Boost Trade, Diverts Exports, Hurts Global Welfare
The article looks at how trade was affected by regional agreements in the 1990s. The researchers used a model to study trade between 58 countries. They found that new trade agreements didn't increase trade within the groups much. The EU and EFTA did divert trade, hurting other countries. Latin American trade agreements did boost imports for some countries, but MERCOSUR's exports went down.