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2009 (Vol. 1, Issue: 1)
Article Information:

The Dynamics of Trade Creation and Trade Diversion Effects Under International Economic Integration

R.T. Dalimov
Corresponding Author:  Ravshanbek Dalimov 

Key words:  Efficiency of economic union, economic integration, trade creation and trade diversion effects, Navier-Stoxes equation, interregional flow of the goods, spatial dynamics of the output,
Vol. 1 , (1): Page No: 1-4
Submitted Accepted Published
2009 Month, 00 2009 July, 18
Abstract:

The research develops dynamic tool to the analysis of trade creation and trade diversion effects under economic integration based on the model developed for interregional flow of the goods between member states of the union and the rest of the world. It is based on Navier-Stoxes equation usually applied to gas and liquid flux. Relation obtained in the article directly links intra- and inter-regional spatial dynamics of prices and outputs, with the former causing the flow of the goods. Analysis has shown that interregional flow of the goods as well as trade creation and trade diversion effects are correctly described by one-dimensional Navier-Stoxes equation, with the method itself complementing static analysis of Vinerís trade creation and diversion effects.
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  Cite this Reference:
R.T. Dalimov, 2009. The Dynamics of Trade Creation and Trade Diversion Effects Under International Economic Integration.  Current Research Journal of Economic Theory, 1(1): Page No: 1-4.
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ISSN (Online):  2042-485X
ISSN (Print):   2042-4841
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