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Promoting Domestic Reforms through Regionalism

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  • Dee, Philippa

    (Asian Development Bank Institute)

  • McNaughton, Anne

    (Asian Development Bank Institute)

Abstract

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 reform—the European Union (EU)—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 EU’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 Info

Paper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 312.

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Length: 45 pages
Date of creation: 17 Oct 2011
Date of revision:
Handle: RePEc:ris:adbiwp:0312

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Keywords: domestic reforms; regionalism; regional agreements; european union;

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References

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  16. Philippa Dee, 2005. "The Australia-US Free Trade Agreement: An Assessment," Asia Pacific Economic Papers 345, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  17. Ethier, Wilfred J., 2001. "The new regionalism in the Americas: a theoretical framework," The North American Journal of Economics and Finance, Elsevier, vol. 12(2), pages 159-172, July.
  18. Barichello, Richard R., 2004. "Nafta And Domestic Agricultural Policy Reform: Observations From Canada," Working Papers 15851, University of British Columbia, Food and Resource Economics.
  19. Burley, Anne-Marie & Mattli, Walter, 1993. "Europe Before the Court: A Political Theory of Legal Integration," International Organization, Cambridge University Press, vol. 47(01), pages 41-76, December.
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