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Why are there so many Preferential Trade Areas? A Political Economy Perspective

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  • Jaleel Ahmad

Abstract

This paper investigates the causes of the phenomenal growth of preferential trade areas (PTAs) in the world economy during recent decades. A political economy analysis suggests that the attraction of PTAs may be due, in large parts, to (a) a preference for manufacturing industry, rather than merely the gross domestic product (GDP), and (b) the prospect of greater foreign direct investments, in countries forming or joining a PTA.

Suggested Citation

  • Jaleel Ahmad, 2008. "Why are there so many Preferential Trade Areas? A Political Economy Perspective," Global Economic Review, Taylor & Francis Journals, vol. 37(1), pages 51-62.
  • Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:51-62
    DOI: 10.1080/12265080801911915
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