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The Causes of Regionalism

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Author Info
Baldwin, Richard

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Abstract

The traditional explanation of resurgence regionalism nations rests on two pillars. Regionalism is: (i) due to frustration with the WTO process (thought to be too cumbersome for today’s trade issues); and (ii) due to the United States’ conversion from devoted multilateralist to ardent regionalist. This paper argues that the traditional explanation is inconsistent with the facts of North American and European regionalism. It also presents an alternative explanation based on a domino theory of regionalism. Namely, idiosyncratic shocks that deepen or widen regional integration trigger a multiplier or domino effect producing membership requests from countries that were previously happy to be non-members.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1599.

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Date of creation: Mar 1997
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Handle: RePEc:cpr:ceprdp:1599

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Related research
Keywords: Preferential Trade Arrangements; Regionalism; World Trade System;

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Find related papers by JEL classification:
F01 - International Economics - - General - - - Global Outlook

Cited by:
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  1. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2004. "Regionalism," MTID discussion papers 65, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Roberta Benini & Michael Plummer, 2008. "Regionalism and multilateralism: crucial issues in the debate on RTAs," Economic Change and Restructuring, Springer, vol. 41(4), pages 267-287, December. [Downloadable!] (restricted)
  3. Sapir, André, 2000. "EC Regionalism at the Turn of the Millennium: Towards a New Paradigm?," CEPR Discussion Papers 2629, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Austria, Myrna S., 2002. "The Philippines in the Global Trading Environment: Looking Back and the Road Ahead," Discussion Papers DP 2002-15, Philippine Institute for Development Studies. [Downloadable!]
  5. Paolo Epifani & Juliette Vitaloni, 2003. "GATT-Think with Asymmetric Countries," Development Working Papers 175, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  6. Baldwin, Richard, 2006. "Managing the Noodle Bowl: The Fragility of East Asian Regionalism," CEPR Discussion Papers 5561, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Christopher Findlay, 2001. "Old Issues in New Regionalism," Trade Working Papers 391, East Asian Bureau of Economic Research. [Downloadable!]
  8. Richard Baldwin, 2007. "Multilateralising Regionalism: Sphagetti Bowls as building Blocs on the Path to Global Free Trade," Working Papers id:1231, esocialsciences.com. [Downloadable!]
    Other versions:
  9. Lucian Cernat, 2001. "ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?," International Trade 0109001, EconWPA. [Downloadable!]
  10. Baldwin, Richard, 2008. "Big-Think Regionalism: a Critical Survey," CEPR Discussion Papers 6874, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Austria, Myrna S., 2003. "East Asian Regional Cooperation: Approaches and Processes," Discussion Papers DP 2003-02, Philippine Institute for Development Studies. [Downloadable!]
  12. Busse, Matthias & Huth, Matthias & Koopmann, Georg, 2000. "Preferential Trade Agreements: The Case of EU-Mexico," Discussion Paper Series 26269, Hamburg Institute of International Economics. [Downloadable!]
  13. Austria, Myrna S., 2001. "Liberalization and Regional Integration: The Philippines' Strategy to Global Competitiveness," Discussion Papers DP 2001-09, Philippine Institute for Development Studies. [Downloadable!]
  14. Daniel Seidmann, 2006. "Preferential Trading Arrangements as Strategic Positioning," Discussion Papers 2006-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
  15. Austria, Myrna S. & Avila, John Lawrence V., 2001. "Looking Beyond AFTA: Prospects and Challenges for Inter-regional Trade," Philippine Journal of Development, Philippine Institute for Development Studies, vol. 0(2), pages --1. [Downloadable!]
  16. Baldwin, Richard & Rieder, Roland, 2007. "A Test of Endogenous Trade Bloc Formation Theory on EU Data," CEPR Discussion Papers 6389, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  17. Itai Agur, 2007. "The US Trade Deficit, the Decline of the WTO and the Rise of Regionalism," Economics Working Papers ECO2007/17, European University Institute. [Downloadable!]
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  18. Carsten Herrmann-Pillath, 2006. "Reciprocity and the hidden constitution of world trade," Constitutional Political Economy, Springer, vol. 17(3), pages 133-163, September. [Downloadable!] (restricted)
  19. Tammy Holmes, 2005. "What Drives Regional Trade Agreements that Work?," HEI Working Papers 07-2005, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
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