| Synopsis: |
The number of Regional Trade Agreements (RTAs) has increased over time. So have the complexity of issues surrounding their formation and the metrics used to assess them. Despite sustained research efforts, and irrespective of the approach adopted, the economic merits or demerits of regional integration arrangements remain essentially an empirical matter. Given the importance of this issue and the ambiguity that persists with regard to the economic impact of RTAs among developing countries, this paper uses a gravity model to analyze the trade effects of seven south-south RTAs (NAFTA, Andean Community, CARICOM, COMESA, ECOWAS, MERCOSUR and SADC). It reveals the results of the tests and puts forward conclusions and recommendations. |