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The New Regionalism and Policy Interdependence

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  • Baccini, Leonardo

    ()
    (IMT Lucca)

  • Dür, Andreas

    ()
    (University of Salzburg)

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    Abstract

    Since 1990 the number of preferential trade agreements has increased rapidly. Our argument explains this phenomenon, known as the new regionalism, as a result of competition for market access. Exporters that face trade diversion because of their exclusion from a preferential trade agreement concluded by foreign countries push their governments into signing an agreement with the country in which their exports are threatened. We test our argument in a quantitative analysis of the proliferation of preferential trade agreements among 167 countries between 1990 and 2007. The finding that competition for market access is a major driving force of the new regionalism is a contribution to the literature on regionalism and to broader debates about global economic regulation.

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    Bibliographic Info

    Paper provided by University of Salzburg in its series Working Papers in Economics and Finance with number 2010-8.

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    Length: 45 pages
    Date of creation: 22 Apr 2010
    Date of revision:
    Handle: RePEc:ris:sbgwpe:2010_008

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