Regional Trade Agreements Boost Welfare and Specialization for All Members
The research examined if trade agreements between regions help or hurt overall trade and world welfare. They looked at many studies and found that these agreements mostly increased trade instead of diverting it. Also, joining these agreements tended to make all involved countries better off. The researchers found that when trade deals include new trade ideas like competition, technology sharing, and productivity growth, the benefits grow even more. They also highlighted that these agreements could lead to specialization in production, which increases efficiency. Overall, joining these trade agreements seems to lead to positive outcomes for the countries involved.