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Explaining formation and design of EU trade agreements: the role of transparency and flexibility

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  • Baccini, Leonardo

Abstract

What political factors explain the selection of countries for preferential trade agreements by the European Union? I argue that when forming a trade agreement the EU is more likely to target countries that have a higher degree of political and economic transparency than other developing countries. In highly transparent countries the EU is able to monitor effectively whether or not these countries follow its forms of conditionality, which is the main rationale of EU regionalism. Moreover, economic and political transparency plays a particularly important role in determining the degree of flexibility in trade agreements. Evidence based on data from 138 developing countries supports these arguments.

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  • Baccini, Leonardo, 2010. "Explaining formation and design of EU trade agreements: the role of transparency and flexibility," LSE Research Online Documents on Economics 45565, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:45565
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    Cited by:

    1. Fetzer, Thiemo & Schwarz, Carlo, 2019. "Tariffs and Politics: Evidence from Trump’s Trade Wars," The Warwick Economics Research Paper Series (TWERPS) 1227, University of Warwick, Department of Economics.
    2. repec:zbw:rwirep:0466 is not listed on IDEAS
    3. Colin Vance & Nolan Ritter, 2013. "Is Peace a Missing Value or a Zero?," Ruhr Economic Papers 0466, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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    5. Vance, Colin & Ritter, Nolan, 2013. "Is Peace a Missing Value or a Zero?," Ruhr Economic Papers 466, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    More about this item

    Keywords

    EU foreign relationship; preferential trade agreement; transparency; flexibility; selection model;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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