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Trade, Conflicts, and Political Integration: the Regional Interplays

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  • Vincent Vicard

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.

Suggested Citation

  • Vincent Vicard, 2006. "Trade, Conflicts, and Political Integration: the Regional Interplays," CESifo Working Paper Series 1839, CESifo.
    • Handle: RePEc:ces:ceswps:_1839
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp1839.pdf
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    Cited by:

    1. Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso & Celestino Suárez-Burguet, 2011. "Determinants of Deep Integration: Examining Socio-political Factors," Open Economies Review, Springer, vol. 22(3), pages 479-500, July.

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    Keywords

    conflict; trade; regionalism; political integration;
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