Review by Choice Review
Assessment of regional trading arrangements has been fraught with controversy since at least the origins of the European Coal and Steel Community and its successor, the European Economic Community, in 1956--today's European Union. The argument usually centers on the costs and benefits of such arrangements in relation to alternative scenarios ranging from broad-based progress on global easing of trade distortions to the status quo ante. Economists usually conclude that regional trade blocs represent second-best solutions to freeing up global markets, simply because by definition many countries are left out of such arrangements--but that they are certainly better than nothing and quite possibly politically more feasible. Frankel tentatively comes down on the "con" side by arguing that regional free trade zones can easily lead to an excessive degree of economic regionalization but that, wisely used, they can represent stepping-stones toward a more open global trading system. Individual chapters deal with measuring regional trade concentration (including so-called "gravity" models), estimation of the effects of regional free trade arrangements under several different assumptions, the somewhat fuzzy distinction between "natural" and "supernatural" trade blocs, and a set of policy recommendations. The study is very nicely motivated, the empirical analysis is appropriate and well carried out, and the conclusions are largely sensible. Excellent bibliography and index. Highly recommended for college and university libraries. I. Walter New York University
Copyright American Library Association, used with permission.
Review by Choice Review
