The New Regionalism and Policy Interdependence
British Journal of Political Science, 2011
45 Pages Posted: 17 Jan 2011 Last revised: 13 Sep 2012
Date Written: January 16, 2011
Since 1990 the number of preferential trade agreements has increased rapidly. Our argument explains this phenomenon, known as the new regionalism, as a result of competition for market access. Exporters that face trade diversion because of their exclusion from a preferential trade agreement concluded by foreign countries push their governments into signing an agreement with the country in which their exports are threatened. We test our argument in a quantitative analysis of the proliferation of preferential trade agreements among 167 countries between 1990 and 2007. The finding that competition for market access is a major driving force of the new regionalism is a contribution to the literature on regionalism and to broader debates about global economic regulation.
Keywords: Preferential trade agreements, diffusion, spatial econometrics, regionalism, learning, policy interdependence
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