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The new regionalism and policy interdependence

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  • Baccini, Leonardo
  • Dür, Andreas

Abstract

Since 1990, the number of preferential trade agreements has increased rapidly. The argument in this article explains this phenomenon, known as the new regionalism, as a result of competition for market access; exporters facing trade diversion because of their exclusion from a preferential trade agreement concluded by foreign countries push their governments into signing an agreement with the country in which their exports are threatened. The argument is tested in a quantitative analysis of the proliferation of preferential trade agreements among 167 countries between 1990 and 2007. The finding that competition for market access is a major driving force of the new regionalism is a contribution to the literature on regionalism and to broader debates about global economic regulation.

Suggested Citation

  • Baccini, Leonardo & Dür, Andreas, 2012. "The new regionalism and policy interdependence," LSE Research Online Documents on Economics 43056, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:43056
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    File URL: http://eprints.lse.ac.uk/43056/
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    Citations

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    Cited by:

    1. Eric Neumayer & Peter Nunnenkamp & Martin Roy, 2016. "Are stricter investment rules contagious? Host country competition for foreign direct investment through international agreements," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 177-213, February.
    2. Youlang Zhang & Hongshan Yang, 2023. "Bureaucratic politics, innovation compatibility, and the dynamic diffusion of subnational decentralization reforms in China," Review of Policy Research, Policy Studies Organization, vol. 40(4), pages 553-572, July.
    3. Kolcava, Dennis & Nguyen, Quynh & Bernauer, Thomas, 2019. "Does trade liberalization lead to environmental burden shifting in the global economy?," Ecological Economics, Elsevier, vol. 163(C), pages 98-112.
    4. Baccini, Leonardo & Dür, Andreas, 2015. "Investment discrimination and the proliferation of preferential trade agreements," LSE Research Online Documents on Economics 62305, London School of Economics and Political Science, LSE Library.
    5. Baccini, Leonardo & Koenig-Archibugi, Mathias, 2014. "Why do states commit to international labor standards?: interdependent ratification of core ILO conventions, 1948-2009," LSE Research Online Documents on Economics 57665, London School of Economics and Political Science, LSE Library.
    6. Leonardo Baccini & Iain Osgood & Stephen Weymouth, 2019. "The service economy: U.S. trade coalitions in an era of deindustrialization," The Review of International Organizations, Springer, vol. 14(2), pages 261-296, June.
    7. Baccini, Leonardo & Dür, Andreas & Elsig, Manfred, 2015. "The politics of trade agreement design: revisiting the depth-flexibility nexus," LSE Research Online Documents on Economics 62303, London School of Economics and Political Science, LSE Library.
    8. Neumayer, Eric & Plümper, Thomas, 2016. "W," Political Science Research and Methods, Cambridge University Press, vol. 4(1), pages 175-193, January.
    9. Peter Egger & Michael Stimmelmayr, 2017. "Taxation and the Multinational Firm," CESifo Working Paper Series 6384, CESifo.
    10. Jieun Lee & Iain Osgood, 2019. "Exports, jobs, growth! Congressional hearings on US trade agreements," Economics and Politics, Wiley Blackwell, vol. 31(1), pages 1-26, March.
    11. Baccini, Leonardo & Kim, Soo Yeon, 2012. "Preventing protectionism: international institutions and trade policy," LSE Research Online Documents on Economics 45573, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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