Measuring and explaining levels of regional economic integration
Abstract124 Regional Trade Agreements were notified to the GATT during the period 1948-1994. Since 1995, over 130 agreements have been notified to the WTO. Using empirical evidence, this paper proposes a way of measuring levels of regional integration and examines several potential explanations for the existence of different levels of regional economic integration. Using a database of regional integration where levels of integration are ranked across countries, a probit analysis in a discrete choice framework is applied. Common traits influencing regional integration decision-making were examined to determine those most influential. It is concluded that democracy and economic freedom, are significant contributors to the chosen level of regional integration. The role of political and economic uncertainty is examined and it is found that trade uncertainty is also a significant contributing factor. --
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Bibliographic InfoPaper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 12-2004.
Date of creation: 2004
Date of revision:
Regional Economic Integration; Ordered-Probit Estimation; Uncertainty;
Find related papers by JEL classification:
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F15 - International Economics - - Trade - - - Economic Integration
- C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
- C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
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