Promoting Domestic Reforms through Regionalism
Abstractï»¿There is a strong presumption among economists that domestic reforms are promoted by regionalism. Yet strong empirical evidence for this proposition is lacking. This paper examines both the theoretical arguments and empirical evidence on this issue, drawing on the relevant economic, political, and legal literature. The authors argue that in general, the case for reciprocity in domestic reforms is weak. In the one case where a regional agreement appears to have promoted domestic reformâ€”the European Union (EU)â€”the enforcement mechanisms used by the European Court of Justice played a significant role. But those mechanisms are not unique. Instead, the authors argue that the EUâ€™s success was because domestic constituents were empowered to take action against uncompetitive regulation. Thus the EU promoted economic reform in sensitive, behind-the-border areas because it overcame the problem of loss of sovereignty by internalizing the political battle to domestic interests, and yet still provided a non-political frame of reference for the debate.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Governance Working Papers with number 23224.
Date of creation: Oct 2011
Date of revision:
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domestic reforms; Regionalism; EU; regional institutions;
Other versions of this item:
- Philippa Dee, 2011. "Promoting Domestic Reforms Through Regionalism," Crawford School Research Papers 1107, Crawford School of Public Policy, The Australian National University.
- Dee, Philippa & McNaughton, Anne, 2011. "Promoting Domestic Reforms through Regionalism," ADBI Working Papers 312, Asian Development Bank Institute.
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
- F53 - International Economics - - International Relations and International Political Economy - - - International Agreements and Observance; International Organizations
- F55 - International Economics - - International Relations and International Political Economy - - - International Institutional Arrangements
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