This paper develops a methodology for trade policy analysis of costs and benefits of alternative regional integration scenarios. The methodology is based on the disaggregated gravity equation, which is applied to calculate the impact of the EU enlargement on integration strategies of non-member...

Despite economic theory and empirical literature that have shown that wide availability of business services contributes significantly to productivity gains and growth, economic modelers have been slow to meaningfully incorporate services into their models. This paper employs a 52-sector, small,...