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Regional integration and development in small states

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  • Schiff, Maurice

Abstract

The author examines the impact of various trade policies for small developing states in the face of changing international trends - including globalization, the proliferation of regional integration agreements, the changing relationship between African, Caribbean, and Pacific (ACP) countries and the European Union (EU), the erosion of ACP preferences in the EU market, the Everything-But-Arms Initiative (a 2001 EU initiative providing forty nine developing countries free access to EU markets), and the negotiations on the Free Trade Agreement of the Americas. The author concludes that: 1) The participants in South-South regional integration agreements should further reduce their external trade barriers. 2) The trade component of the Cotonou Agreement between the ACP countries and the EU is likely to harm those countries. The ACP countries should liberalize their trade regimes to reduce the size of transfers to the EU. 3) Small states should sign free trade agreements with the rest of the Organization for Economic Cooperation and Development (OECD), and pursue multilateral liberalization. 4) Small states, and other developing countries should intensify South-South regional cooperation in the area of regional public goods. 5) The EU, and other OECD countries should provide country-specific technical assistance for"behind the border"reforms in small states - something specified in the Cotonou Agreement for ACP countries - as well as assistance in implementing their commitments under World Trade Organization agreements.

Suggested Citation

  • Schiff, Maurice, 2002. "Regional integration and development in small states," Policy Research Working Paper Series 2797, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2797
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    References listed on IDEAS

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    1. Panagariya, A., 1997. "Preferential trading and the myth of natural trading partners," Japan and the World Economy, Elsevier, vol. 9(4), pages 471-489, December.
    2. J.M. Finger & Philip Schuler, 2002. "Implementation of Uruguay Round Commitments: The Development Challenge," Chapters, in: Institutions and Trade Policy, chapter 17, pages 258-272, Edward Elgar Publishing.
    3. Schiff, Maurice, 1997. "Small is Beautiful: Preferential Trade Agreements and the Impact of Country Size, Market Share, and Smuggling," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 359-387.
    4. Hoekman, Bernard, 2002. "Strengthening the global trade architecture for development," Policy Research Working Paper Series 2757, The World Bank.
    5. Schiff, Maurice, 1996. "Small is beautiful : preferential trade agreements and the impact of country size, market share, efficiency, and trade policy," Policy Research Working Paper Series 1668, The World Bank.
    6. John Whalley, 1998. "Why Do Countries Seek Regional Trade Agreements?," NBER Chapters, in: The Regionalization of the World Economy, pages 63-90, National Bureau of Economic Research, Inc.
    7. Andriamananjara, Soamiely & Schiff, Maurice, 1998. "Regional groupings among microstates," Policy Research Working Paper Series 1922, The World Bank.
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    Citations

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    Cited by:

    1. Independent Evaluation Group, 2006. "Assessing World Bank Support for Trade, 1987-2004 : An IEG Evaluation," World Bank Publications - Books, The World Bank Group, number 6966.
    2. Adriana Peluffo, 2011. "Integración regional y difusión de tecnologí­a: el caso uruguayo," Documentos de Trabajo (working papers) 11-10, Instituto de Economía - IECON.
    3. Sarah Ellis Barnekow & Kishore G. Kulkarni, 2017. "Why Regionalism? A Look at the Costs and Benefits of Regional Trade Agreements in Africa," Global Business Review, International Management Institute, vol. 18(1), pages 99-117, February.
    4. World Bank, 2002. "Pacific Islands - Regional Economic Report : Embarking on a Global Voyage - Trade Liberalization and Complementary Reforms in the Pacific," World Bank Publications - Reports 15362, The World Bank Group.
    5. Justyna Wieloch, 2015. "Kraje rozwijające się w ugrupowaniach integracyjnych / Developing Countries in Economic Agreements," International Economics, University of Lodz, Faculty of Economics and Sociology, issue 9, pages 40-49, March.
    6. Philippe Kohler, 2004. "The Welfare Cost of Tariff Protection in the Balkan Countries," wiiw Balkan Observatory Working Papers 57, The Vienna Institute for International Economic Studies, wiiw.
    7. Kaminski, Bartlomiej & de la Rocha, Manuel, 2003. "Stabilization and association process in the Banlkans : integration options and their assessment," Policy Research Working Paper Series 3108, The World Bank.
    8. Zafar, Ali, 2005. "Revenue and the fiscal impact of liberalization : the case of Niger," Policy Research Working Paper Series 3500, The World Bank.
    9. de la Rocha, Manuel, 2003. "The Cotonou Agreement and its implications for the regional trade agenda in eastern and southern Africa," Policy Research Working Paper Series 3090, The World Bank.
    10. International Monetary Fund, 2005. "Eastern Caribbean Currency Union: Selected Issues," IMF Staff Country Reports 2005/305, International Monetary Fund.

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