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Measuring and explaining levels of regional economic integration

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  • Pédussel Wu, Jennifer

Abstract

124 Regional Trade Agreements were notified to the GATT during the period 1948-1994. Since 1995, over 130 agreements have been notified to the WTO. Using empirical evidence, this paper proposes a way of measuring levels of regional integration and examines several potential explanations for the existence of different levels of regional economic integration. Using a database of regional integration where levels of integration are ranked across countries, a probit analysis in a discrete choice framework is applied. Common traits influencing regional integration decision-making were examined to determine those most influential. It is concluded that democracy and economic freedom, are significant contributors to the chosen level of regional integration. The role of political and economic uncertainty is examined and it is found that trade uncertainty is also a significant contributing factor.

Suggested Citation

  • Pédussel Wu, Jennifer, 2004. "Measuring and explaining levels of regional economic integration," ZEI Working Papers B 12-2004, University of Bonn, ZEI - Center for European Integration Studies.
  • Handle: RePEc:zbw:zeiwps:b122004
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    File URL: https://www.econstor.eu/bitstream/10419/39591/1/393967123.pdf
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    References listed on IDEAS

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    3. Pédussel Wu, Jennifer, 2002. "Trade agreements as self-protection," ZEI Working Papers B 29B-2002, University of Bonn, ZEI - Center for European Integration Studies.
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    Citations

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    Cited by:

    1. Baldwin, Richard & Jaimovich, Dany, 2012. "Are Free Trade Agreements contagious?," Journal of International Economics, Elsevier, pages 1-16.
    2. Baldwin, Richard Edward & Rieder , Roland, 2007. "A Test of Endogenous Trade Bloc Formation Theory on EU Data," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 11(2), pages 77-110, December.
    3. Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso & Celestino Suárez-Burguet, 2011. "Determinants of Deep Integration: Examining Socio-political Factors," Open Economies Review, Springer, vol. 22(3), pages 479-500, July.
    4. Roland Rieder, 2006. "Playing Dominoes in Europe: An Empirical Analysis of the Domino Theory for the EU, 1962-2004," IHEID Working Papers 11-2006, Economics Section, The Graduate Institute of International Studies, revised Jun 2006.

    More about this item

    Keywords

    Regional Economic Integration; Ordered-Probit Estimation; Uncertainty;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other

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