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Abstract
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Article Information:
The Dynamics of Trade Creation and Trade Diversion Effects Under International Economic Integration
R.T. Dalimov
Corresponding Author: Ravshanbek Dalimov
Submitted: 2009 Month, 00
Accepted: 2009 July, 18
Published: |
Abstract:
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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 Viner’s trade creation and diversion effects.
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,
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Cite this Reference:
R.T. Dalimov, . The Dynamics of Trade Creation and Trade Diversion Effects Under International Economic Integration. Current Research Journal of Economic Theory, (1): Page No: 1-4.
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ISSN (Online): 2042-485X
ISSN (Print): 2042-4841 |
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