REGIONAL BLOCS OR GLOBAL MARKETS - A WORLD ACCOUNTING APPROACH TO ANALYZE TRADE AND FINANCIAL LINKAGES

Do we live in a world of globalized capital and commodity markets or d o regional networks dominate trade and financial linkages between econ omies? This paper addresses the question, using an integrated and cons istent data system of trade and financial flows, called the World Acco unting Matrix (WAM). This framework overcomes many of the data discrep ancies and shortcomings in official statistics sources. Simple descrip tive parameters are derived from the WAM to define the degree of trade and financial linkages between countries and regions. It is found tha t regional ties continue to be a predominant feature of the structure of the world economy.