@techreport{PedusselWu2002Trade,
abstract = {Risks that are associated with an uncertain trading world have been dealt with using two
different techniques in the literature: defensive, or insurance approaches, and preventive, or
self-protection approaches. Much of the earlier work was emphasized by security issues but
with the end of the Cold War attention turned toward preventive approaches. This paper
argues that the incentive for loss prevention leads to some form of cooperative regional
integration. Inclusion of uncertainty positively contributes to the overall customs union
literature. The optimal level of integration, political or economic, is found and then using
simple comparative statics, the effects of some changes in the underlying parameters of the
economy on the optimal level of integration are examined. Multilateralism and regionalism
are concluded to be complements.},
address = {Bonn},
author = {Jennifer P\'{e}dussel Wu},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F02; F15; 330; Self-protection; Uncertainty; Economic Integration; Multilateralism; Regionalism; Handelsregionalismus; Wirtschaftsintegration; Handelsabkommen; Protektionismus; Kosten-Nutzen-Analyse; T},
language = {eng},
number = {B 29B-2002},
publisher = {ZEI},
title = {Trade agreements as self-protection},
type = {ZEI working paper},
url = {http://hdl.handle.net/10419/39567},
year = {2002}
}
