Hub-and-Spokes Free-Trade-Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere

Using a comparative-static general equilibrium model and in the context of the western hemisphere, this paper compares the economic effects of a "hub-and-spokes (HAS)" type of bilateral trade configuration (with Chile being the hub) with those of a more comprehensive regional FTA (namely, the FTAA). The model is augmented to account for the possibility of technology spillovers and its effective assimilation among participating economies. In particular, absorptive capacity, governance factor, proximity and socio-institutional congruence conjointly determine an economy's capacity to capture the technology that is transmitted from developed spoke US to other regions.


Issue Date:
2004
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/15870
Total Pages:
39
JEL Codes:
D58; F16; O4
Series Statement:
Working Paper 2004-09-A




 Record created 2017-04-01, last modified 2017-10-21

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