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Title:Trade, conflicts, and political integration: the regional interplays PDF Logo
Authors:Vicard, Vincent
Issue Date:2006
Series/Report no.:CESifo working paper 1839
Abstract:This paper investigates the determinants of the different forms taken by regional integration in different parts of the world. This raises the issue of the relationship between economic and political integration. The theoretical model shows that, in an insecure world, the interplays between security and economic forces shape the decision to form a regional trading agreement (RTA) and its institutional design. Empirical results confirm that regionalism should be understood as a regulation mechanism: countries experiencing more interstate disputes are more likely to create a deep RTA, such as custom union or common market, whereas international insecurity deters the formation of preferential and free trade agreements.
JEL:D74
F02
F15
H56
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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