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International Organisations in a World of Regional Trade Agreements: Lessons from Club Theory

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  • Michele Fratianni
  • John Pattison

Abstract

This essay deals with the challenge that international organizations face at the turn of the millennium. The basic insight from the theory of clubs and information theory is that coordination and cooperation require dominant providers. Cooperation becomes more difficult as players become more equal in economic size. Today's environment is less conducive to cooperation than the environment after World War II. By extension, club theory suggests that Regional Trade Agreements are not flukes. They have proliferated because cooperation is feasible in smaller groups with a few larger players. There is a significant risk, however, that regional blocs may replace the multilateral cooperative process. To reduce this risk we propose the creation of an inter-bloc international organization dedicated to reduce blocs' barriers to trade and finance. Copyright Blackwell Publishers Ltd 2001.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 24 (2001)
Issue (Month): 3 (03)
Pages: 333-358

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Handle: RePEc:bla:worlde:v:24:y:2001:i:3:p:333-358

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Cited by:
  1. Crescenzo dell'Aquila & Marijke Kuiper, 2003. "Which Road to Liberalization? A first assessment of the EuroMed association agreements," ENARPRI Working Papers 002, ENARPRI (European Network of Agricultural and Rural Policy Research Institutes).
  2. Michele Fratianni, 2004. "Borders and the Constraints on Globalization," Working Papers 2004-05, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  3. Chang Hoon Oh & Michele Fratianni, 2010. "Do Additional Bilateral Investment Treaties Boost Foreign Direct Investments?," Working Papers 2010-04, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  4. Michele Fratianni & Chang Hoon Oh, 2007. "On the Relationship Between RTA Expansion and Openness," Working Papers 2007-13, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  5. Carsten Herrmann-Pillath, 2006. "Reciprocity and the hidden constitution of world trade," Constitutional Political Economy, Springer, vol. 17(3), pages 133-163, September.
  6. Eufrocinio M. Bernabe, Jr. & Dongkoo Chang, 2013. "SEACEN’s Optimal Membership Size," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp90, June.
  7. Hefeker, Carsten, 2003. "Handels- und Finanzarchitektur im Umbruch: Globale Integration und die institutionelle Arbeitsteilung von IWF, Weltbank und WTO," HWWA Discussion Papers 225, Hamburg Institute of International Economics (HWWA).
  8. Jonathan B. Slapin and Julia Gray, University of Pittsburgh, 2009. "Why Some Regional Trade Agreements Work: Private Rents, Exit Options, and Legalization," The Institute for International Integration Studies Discussion Paper Series iiisdp289, IIIS.
  9. Michele Fratianni & Chang Hoon Oh, 2009. "Expanding RTAs, trade flows, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 40(7), pages 1206-1227, September.
  10. Clifton, Judith & Díaz-Fuentes, Daniel, 2011. "La Nueva Política Económica de la OCDE ante el cambio en la Economía Mundial
    [The New Political Economy of the OECD in a context of Shifting World Wealth]
    ," MPRA Paper 33010, University Library of Munich, Germany.
  11. Michele Fratianni & Francesco Marchionne, 2009. "The Limits to Integration," Mo.Fi.R. Working Papers 20, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.

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