Trade, Conflicts, and Political Integration: the Regional Interplays
Vincent Vicard
No 1839, CESifo Working Paper Series from CESifo
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.
Keywords: conflict; trade; regionalism; political integration (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-int, nep-pbe and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1839
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