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The Political Economy of A Trade-First Approach to Regionalism

Author

Listed:
  • Graham Bird

    (University of Surrey, Guildford, UK)

  • Ramkishen Rajan

    (School of Economics, University of Adelaide, Australia)

Abstract

Regional integration has become commonplace in the world economy. Moreover, there is clear evidence of a ‘trade first’ approach to regionalism. What is the logic behind this approach? Is it that trade integration prepares the ground for monetary integration by helping to fulfil optimum currency area criteria? Having analysed the economic interrelationship between regional trade integration and monetary union, the paper contends that the ‘trade first’ strategy can instead be explained in political economy terms; there is a higher political return to trade integration. The paper concludes by examining the implications for the future of both regionalism and multilateralism.

Suggested Citation

  • Graham Bird & Ramkishen Rajan, 2002. "The Political Economy of A Trade-First Approach to Regionalism," Centre for International Economic Studies Working Papers 2002-18, University of Adelaide, Centre for International Economic Studies.
    • Handle: RePEc:adl:cieswp:2002-18
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    File URL: http://www.adelaide.edu.au/cies/papers/0218.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ramkishen Rajan & Reza Siregar & Graham Bird, 2003. "Examining the case for Reserve Pooling in East Asia: Empirical Analysis," Centre for International Economic Studies Working Papers 2003-23, University of Adelaide, Centre for International Economic Studies.
    2. Paul Vandoren, 2005. "Regional economic integration in South East Asia," Asia Europe Journal, Springer, vol. 3(4), pages 517-535, December.
    3. Pédussel Wu, Jennifer, 2004. "Measuring and explaining levels of regional economic integration," ZEI Working Papers B 12-2004, University of Bonn, ZEI - Center for European Integration Studies.
    4. Sarath Chandran, B.P., 2010. "Trade Compatibility Between India And Asean Countries," MPRA Paper 33138, University Library of Munich, Germany.

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