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Promoting Domestic Reforms through Regionalism

Author

Listed:
  • Dee, Philippa

    (Asian Development Bank Institute)

  • McNaughton, Anne

    (Asian Development Bank Institute)

Abstract

There is a strong presumption among economists that domestic reforms are promoted by regionalism. Yet strong empirical evidence for this proposition is lacking. This paper examines both the theoretical arguments and empirical evidence on this issue, drawing on the relevant economic, political, and legal literature. The authors argue 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 (EU)—the enforcement mechanisms used by the European Court of Justice played a significant role. But those mechanisms are not unique. Instead, the authors argue 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 internalizing the political battle to domestic interests, and yet still provided a non-political frame of reference for the debate.

Suggested Citation

  • Dee, Philippa & McNaughton, Anne, 2011. "Promoting Domestic Reforms through Regionalism," ADBI Working Papers 312, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:0312
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    File URL: http://www.adbi.org/files/2011.10.13.wp312.promoting.domestic.reforms.regionalism.pdf
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    References listed on IDEAS

    as
    1. Hoekman, Bernard & Mattoo, Aaditya, 2011. "Services trade liberalization and regulatory reform : re-invigorating international cooperation," Policy Research Working Paper Series 5517, The World Bank.
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    6. Philipp Harms & Aaditya Mattoo & Ludger Schuknecht, 2003. "Explaining liberalization commitments in financial services trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(1), pages 82-113, March.
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    Cited by:

    1. Giovanni Capannelli, 2013. "Comment on “Regional Cooperation and Integration in the Mekong Region”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 167-168, June.

    More about this item

    Keywords

    domestic reforms; regionalism; regional agreements; european union;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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