Regional economic arrangements such as free trade areas (FTAs), customs unions and currency blocs have become increasingly prevalent in the world economy. Including both empirical and theoretical studies, this volume addresses questions concerning FTAs and other regional trading arrangements.

Acknowledgments Introduction Jeffrey A. Frankel 1: Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World? Alan V. Deardorff Comment: Jeffrey H. Bergstrand Comment: Gene M. Grossman 2: The Role of History in Bilateral Trade Flows Barry Eichengreen, Douglas A. Irwin. Comment: Robert Z. Lawrence Comment: Paul Wonnacott 3: Why Do Countries Seek Regional Trade Agreements? John Whalley Comment: Eric W. Bond Comment: Dani Rodrik 4: Continental Trading Blocs: Are They Natural or Supernatural? Jeffrey A. Frankel, Ernesto Stein, Shang-Jin Wei. Comment: Paul Krugman Comment: T. N. Srinivasan 5: The Welfare Implications of Trading Blocs among Countries with Different Endowments Antonio Spilimbergo, Ernesto Stein. Comment: John Haveman Comment: Edward E. Leamer 6: Regional Patterns in the Law of One Price: The Roles of Geography versus Currencies Charles Engel, John H. Rogers. Comment: Kenneth A. Froot Comment: Michael Knetter 7: Regionalization of World Trade and Currencies: Economics and Politics Jeffrey A. Frankel, Shang-Jin Wei. Comment: David Hummels Comment: Philip I. Levy 8: Tariff Phase-Outs: Theory and Evidence from GATT and NAFTA Carsten Kowalczyk, Donald Davis. Comment: Arvind Panagariya Comment: Robert W. Staiger 9: Overview Anne O. Krueger Contributors Author Index Subject Index