The US Trade Deficit, the Decline of the WTO and the Rise of Regionalism

dc.contributor.author	AGUR, Itai
dc.date.accessioned	2007-10-03T15:29:19Z
dc.date.available	2007-10-03T15:29:19Z
dc.date.issued	2007
dc.identifier.issn	1725-6704
dc.identifier.uri	http://hdl.handle.net/1814/7104
dc.description.abstract	This paper argues that the growing US trade deficit has caused the decline of the WTO and the rise of regional trade agreements. A country in de.cit prefers to retain market power against countries with a large surplus. Multilateral cooperation restricts its choice. This notion is formalized in a three-country game in which countries negotiate multilaterally and, if that fails, bilaterally. The multilateral agreement only holds for su¢ ciently even trade balances. When one country's deficit grows too large, a regionalist equilibrium emerges. A VAR analysis shows that the US trade balance explains over 50% of the variation in regional trade agreements.	en
dc.language.iso	en	en
dc.publisher	European University Institute
dc.relation.ispartofseries	EUI ECO	en
dc.relation.ispartofseries	2007/17	en
dc.subject	Regionalism	en
dc.subject	RTA	en
dc.subject	Multilateralism	en
dc.subject	WTO	en
dc.subject	Trade balance	en
dc.subject	US trade deficit	en
dc.subject	C72, C73, F13, F32	en
dc.title	The US Trade Deficit, the Decline of the WTO and the Rise of Regionalism	en
dc.type	Working Paper	en
dc.neeo.contributor	AGUR\|Itai\|aut\|
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