Outsiders and regional trade agreements among small countries : the case of regional markets

Standard theory says that a country's welfare is unaffected by being excluded from a small regional trade agreement. But for most products,"small"countries and regional trade agreements do have some measure of market power. Such market power can arise if (1) supply is geographically concentrated; (2) tastes differ; (3) there is product differentiation (such as quality); (4) transport costs are high; (5) the principal importing countries impose quantitative restrictions; and (6) there is hysterisis because of irreversible costs. The authors show, based on two case studies, that regional trade agreements among small countries may have negative welfare implications for outside countries. In the first case, they find that Argentina's cattle and beef exports to Peru fell when Peru formed a regional trade agreement (the Andean Pact) with various countries, including Colombia, and exporter of the same products. Argentina also lost because of the higher unit price it received on its exports to Peru. Interestingly, Venezuela's entry into the Andean Pact (that is, the formation of a larger bloc) seems to have resulted in a welfare gain for the outside country (Argentina). In the second case, rather than examine whether formation of the Central American Common Market (CACM) had a negative impact on outside countries (for which they lacked data), they examine the impact of the CACM's breakdown on member countries. Although the CACM has essentially been trade-diverting for manufactures, it seems to have been trade-creating for white maize, with both importing and exporting member countries gaining from the regional trade agreement. So, one would expect that a breakdown of the CACM, which resulted in member countries becoming relatively more"outsiders"to the bloc, may have led to a decline in the welfare of both the exporting and importing member countries. This is supported by the data, and implies that if one of the five member countries had been left out of the CACM, it would have been worse off where white maize was concerned.Environmental Economics&Policies,Economic Theory&Research,Markets and Market Access,Trade Policy,Rules of Origin,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Trade and Regional Integration,Economic Theory&Research,Trade Policy,Environmental Economics&Policies

Youth Reproductive Health in Nepal: Is Participation the Answer?

Discusses the processes and results of a multi-year research study by ICRW, EngenderHealth, and Nepali partners, which tested the effectiveness of the participatory approach in defining and addressing the reproductive health concerns of adolescents

Experimental and theoretical study on the infrared spectroscopy of astrophysically relevant PAH derivatives 2- and 9-vinylanthracene

We propose to evaluate the contribution of polycyclic aromatic hydrocarbon molecules that carry side groups to the mid-infrared emission spectra. Within this framework, the IR absorption spectra of 2- and 9-vinylanthracene were measured in Ar matrices at 12 K and in CsI and polyethylene pellets at room temperature. The laboratory spectra were analyzed with the support of simulations based on the density functional theory. For each PAH molecule, eight IR spectra were computed by combining the B3LYP functional with as many different basis sets, namely 4-31G, 4-31G(d), 6-31G, 6-311G, 6-31G(d), 6-31G(d,p), 6-31+G(d,p), and 6-31++G(d,p). The comparison of the theoretical spectra with the laboratory data allowed us to determine the most suitable combinations for modeling the IR spectra of neutral PAH molecules that carry a vinyl side group. It was concluded from the examples of 2- and 9-VA that the optimum basis set is 6-31G unless a steric interaction has to be taken into account, in which case the optimum basis set is 6-31G(d). Thus, in the presence of such an interaction, the use of d-type polarization functions is recommended. We discuss the possibility for neutral vinyl-substituted PAHs to contribute to the mid-infrared emission spectra and find that their specific features do not match with the mid-infrared aromatic emission bands.Comment: Accepted for publication in The Astrophysical Journa