Global Trade Alliances: Analyzing Economic Impact Across Borders
Examining Economic Outcomes across Global Trade Alliances
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This study examines economic trends across five major trade blocs-SAARC, ASEAN, NAFTA, OECD, and the EU-focusing on how GDP growth, trade openness, FDI, and exports interact with each bloc's unique strengths and vulnerabilities. SAARC displays volatile growth, impacted heavily by global crises, whereas ASEAN shows resilience through high trade integration. NAFTA and OECD exhibit steady growth, balancing domestic interests with moderate trade openness, while the EU's interconnected economies reveal heightened sensitivity to internal issues. ASEAN leads in trade openness, reflecting proactive tr...
This study examines economic trends across five major trade blocs-SAARC, ASEAN, NAFTA, OECD, and the EU-focusing on how GDP growth, trade openness, FDI, and exports interact with each bloc's unique strengths and vulnerabilities. SAARC displays volatile growth, impacted heavily by global crises, whereas ASEAN shows resilience through high trade integration. NAFTA and OECD exhibit steady growth, balancing domestic interests with moderate trade openness, while the EU's interconnected economies reveal heightened sensitivity to internal issues. ASEAN leads in trade openness, reflecting proactive trade policies, while SAARC's low openness highlights internal barriers. The EU and NAFTA lead in outward FDI, supporting global reach, while SAARC and ASEAN prioritize internal development. Export trends vary, with upward momentum interrupted by crises, and a fixed-effects panel regression model shows that exports, trade, and FDI have limited direct impact on GDP, suggesting that regional characteristics-like policy frameworks and industrial composition-are more critical. Policymakers, therefore, should focus on structural reforms and targeted policies that strengthen regional characteristics.
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