On the Path to Trade Liberalization: Political Regimes in International Trade Negotiations

49 Pages Posted: 27 Sep 2012

See all articles by Florian Mölders

Florian Mölders

German Institute for Economic Research (DIW Berlin)

Date Written: September 1, 2012

Abstract

The number of free trade agreements has increased substantially since 1980 despite efforts to promote multilateral trade liberalization. While there is evidence on the determinants of FTA formation, still little is known on the processing of trade agreements, particularly regarding the pre-implementation duration. This paper fills the research gap by using event data on the proposal, the negotiation, the signing, and the implementation of trade agreements. Duration analysis is employed to examine the connection between regime types and the lengths of the negotiation and the ratification stages. The results support the claim that higher levels of democratization and political constraints are associated with delays in the implementation of an agreement. This is primarily observable in the ratification stage. Moreover, I detect significantly prolonged negotiation talks and ratifications if the European Union participates.

Keywords: free trade agreements, international cooperation, duration analysis

JEL Classification: F13

Suggested Citation

Mölders, Florian, On the Path to Trade Liberalization: Political Regimes in International Trade Negotiations (September 1, 2012). DIW Berlin Discussion Paper No. 1245. Available at SSRN: https://ssrn.com/abstract=2152283 or http://dx.doi.org/10.2139/ssrn.2152283

Florian Mölders (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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