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Promoting Domestic Reforms Through Regionalism

  • Philippa Dee

    ()

    (The Australian National University (ANU) - Crawford School of Public Policy)

There is a strong presumption among economists that domestic reforms are promoted by regionalism. Yet strong empirical evidence for this proposition is lacking. The purpose of the paper is to examine in some detail both the theoretical arguments and empirical evidence on this issue, drawing on the relevant economic, political and legal literatures. The paper argues that in general, the case for reciprocity in domestic reforms is weak. In the one case where a regional agreement appears to have promoted domestic reform — the European Union — the enforcement mechanisms used by the European Court of Justice played a significant role. But those mechanisms are not unique. Instead, the paper argues that the EU's success was because domestic constituents were empowered to take action against uncompetitive regulation. Thus the EU promoted economic reform in sensitive, behind-the-border areas because it overcame the problem of loss of sovereignty by internalising the political battle to domestic interests, and yet still provided a non-political frame of reference for the debate.

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File URL: http://www.crawford.anu.edu.au/pdf/crwf_ssrn/crwfrp_1107.pdf
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Paper provided by Crawford School of Public Policy, The Australian National University in its series Crawford School Research Papers with number 1107.

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Length: 35 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:een:crwfrp:1107
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Web page: https://crawford.anu.edu.au/research/crwf_ssrn/
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  1. Francois, Joseph & Hoekman, Bernard, 2009. "Services Trade and Policy," CEPR Discussion Papers 7616, C.E.P.R. Discussion Papers.
  2. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-91, June.
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  4. Park, Innwon & Park, Soonchan, 2006. "Reform-creating regional trade agreements and foreign direct investment: applications for East Asia," MPRA Paper 1817, University Library of Munich, Germany, revised Jan 2007.
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  7. Claude Barfield, 2001. "Free Trade, Sovereignty, Democracy," Books, American Enterprise Institute, number 52877, 8.
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  10. Wilfred J. Ethier, 1998. "Regionalism in a Multilateral World," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1214-1245, December.
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  12. Hoekman, Bernard & Mattoo, Aaditya, 2011. "Services Trade Liberalization and Regulatory Reform: Re-invigorating International Cooperation," CEPR Discussion Papers 8181, C.E.P.R. Discussion Papers.
  13. Hoekman, Bernard & Mattoo, Aaditya & Sapir, André, 2007. "The Political Economy of Services Trade Liberalization: A Case for International Regulatory Cooperation?," CEPR Discussion Papers 6457, C.E.P.R. Discussion Papers.
  14. Carrubba, Clifford J. & Murrah, Lacey, 2005. "Legal Integration and Use of the Preliminary Ruling Process in the European Union," International Organization, Cambridge University Press, vol. 59(02), pages 399-418, April.
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  16. Ethier, Wilfred J., 2001. "The new regionalism in the Americas: a theoretical framework," The North American Journal of Economics and Finance, Elsevier, vol. 12(2), pages 159-172, July.
  17. repec:aei:rpbook:24252 is not listed on IDEAS
  18. Martin Gassebner & Noel Gaston & Michael Lamla, 2007. "The Inverse Domino Effect: Are Economic Reforms Contagious?," Monash Economics Working Papers 31-07, Monash University, Department of Economics.
  19. Barichello, Richard R., 2004. "Nafta And Domestic Agricultural Policy Reform: Observations From Canada," Working Papers 15851, University of British Columbia, Food and Resource Economics.
  20. Edward M. Graham & Erika Wada, 2000. "Domestic Reform, Trade and Investment Liberalisation, Financial Crisis, and Foreign Direct Investment into Mexico," The World Economy, Wiley Blackwell, vol. 23(6), pages 777-797, 06.
  21. Philippa Dee, 2005. "The Australia-US Free Trade Agreement: An Assessment," Asia Pacific Economic Papers 345, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
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