Title: Does regionalism work? A random and fixed effects model

Authors: Rock-Antoine Mehanna, Hannarong Shamsub

Addresses: Faculty of Business Administration & Economics, Notre Dame University, P.O. Box 72 Zouk Mikael, Zouk Mosbeh, Lebanon and Academy of International Business Southwest Chapter, USA. ' Unit for Social and Environmental Research (USER), P.O. Box 144, Faculty of Social Sciences, Chiang Mai University, Chiang Mai, 50202, Thailand

Abstract: An extensive body of work has examined the viability of regional blocs or RIA in different settings. Most of these studies have focused on whether regional blocs hinder or facilitate global free trade, create or divert trade of member countries or affect economic growth (Schiff and Winters, 2003). Unlike past and contemporary work, the purpose of this study is to investigate three research questions of great significance to current trade policy and development debates. The questions under investigation are as follows: (1) which group of regional blocs is viable in promoting intra- and/or extra-regional trade?; (2) which direction of trade (i.e. within/intra or by/extra regional grouping) contributes more to regional growth?; (3) which grouping significantly contributes to regional growth?

Keywords: fixed and random effects model; regional growth; regional trade; regionalism; regional development; regional blocs.

DOI: 10.1504/JIBED.2009.022527

Journal for International Business and Entrepreneurship Development, 2009 Vol.4 No.1/2, pp.22 - 44

Published online: 14 Jan 2009 *

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