Multilateral trade liberalization and political disintegration - implications for the evolution of free trade areas and customs unions
Abstract
The author combines two theories - one about how multilateral trade liberalization affects regional integration, the other about how it affects political disintegration - to explain why the ratio of free trade areas to customs unions has increased over time. Ethier argues (1998, 1999) that multilateral trade liberalization led to the recent wave of regional integration arrangements. Alesina and others (1997), in discussing the number and size of countries, argue that multilateral trade liberalization leads to political disintegration, with an increase in the number of countries. Combining the two arguments, the author hypothesizes that as multilateral trade liberalization proceeds, and the number of regional integration arrangements increases, the ratio of free trade areas to customs unions also increases. The data, which show that ratio increasing in the 1990s, are consistent with the hypothesis.Download Info
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2350.Length:
Date of creation: 31 May 2000
Date of revision:
Handle: RePEc:wbk:wbrwps:2350
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Keywords: Environmental Economics&Policies; Economic Theory&Research; Rules of Origin; Earth Sciences&GIS; Trade Policy; Rules of Origin; Earth Sciences&GIS; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Trade and Regional Integration; Economic Theory&Research;Find related papers by JEL classification:
- TF0 - - - - - -
- FUN - International Economics - - - - -
- OPE - Economic Development, Technological Change, and Growth - - - - -
- ADM - General Economics and Teaching - - - - -
- FEE - International Economics - - - - -
- INC - Health, Education, and Welfare - - - - -
- AND - General Economics and Teaching - - - - -
- EXP - Macroeconomics and Monetary Economics - - - - -
- ACC - General Economics and Teaching - - - - -
References
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- Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000.
"Economic Integration and Political Disintegration,"
American Economic Review,
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- Wacziarg, Romain & Spolaore, Enrico & Alesina, Alberto, 2000. "Economic Integration and Political Disintegration," Scholarly Articles 4553029, Harvard University Department of Economics.
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- Bolton, Patrick & Roland, Gerard, 1997.
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- Bolton, Patrick & Roland, Gerard & Spolaore, Enrico, 1996. "Economic theories of the break-up and integration of nations," European Economic Review, Elsevier, vol. 40(3-5), pages 697-705, April.
- Ethier, Wilfred J, 1998. "The New Regionalism," Economic Journal, Royal Economic Society, vol. 108(449), pages 1149-61, July.
- Schiff, Maurice & Winters, L. Alan, 1997.
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- Schiff, Maurice & Winters, L Alan, 1998. "Regional Integration as Diplomacy," World Bank Economic Review, World Bank Group, vol. 12(2), pages 271-95, May.
- Schiff, Maurice & Winters, L. Alan, 1997. "Regional Integration as Diplomacy," CEPR Discussion Papers 1690, C.E.P.R. Discussion Papers.
- Michalopoulos, Constantine & Tarr, David, 1997. "The economics of customs unions in the Commonwealth of Independent States," Policy Research Working Paper Series 1786, The World Bank.
- Buchanan, James M & Faith, Roger L, 1987. "Secession and the Limits of Taxation: Toward a Theory of Internal Exit," American Economic Review, American Economic Association, vol. 77(5), pages 1023-31, December.
- Winters, L. Alan, 1996.
"Regionalism versus Multilateralism,"
CEPR Discussion Papers
1525, C.E.P.R. Discussion Papers.
- Winters, L. Alan, 1996. "Regionalism versus multilateralism," Policy Research Working Paper Series 1687, The World Bank.
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