Handbook of Regional Integration and International Macroeconomics

This small handbook is the first to delve into issues related to institutional failures and trade in both developing and developed countries. The main goal of the book is to provide a comprehensive analysis of international trade flows and the effects of exchange rate movements on trade prices and inflation. Another objective of this book is to provide a vivid evidence on how the South African real exchange rate respond to productivity differential of the tradable and nontradable goods sectors. The book comprises three essays on international trade and international macroeconomics. In the first essay I develop an augmented gravity model of trade from a monopolistic competition model of product differentiation to investigate the effects of regional trade agreements and institutional failures on bilateral trade for 46 countries in three distinct regional trade blocs. The other two essays cover exchange rate pass-through and real exchange rate issues. This book is a useful resource material for PhD students working on their dissertations. Trade economists and graduate students taking courses in international economics and time series econometrics will also find this book useful.