Why are there so many Preferential Trade Areas? A Political Economy Perspective

Jaleel Ahmad

Global Economic Review, 2008, vol. 37, issue 1, 51-62

Abstract: This paper investigates the causes of the phenomenal growth of preferential trade areas (PTAs) in the world economy during recent decades. A political economy analysis suggests that the attraction of PTAs may be due, in large parts, to (a) a preference for manufacturing industry, rather than merely the gross domestic product (GDP), and (b) the prospect of greater foreign direct investments, in countries forming or joining a PTA.

Date: 2008
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DOI: 10.1080/12265080801911915

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