IDEAS home Printed from https://ideas.repec.org/a/sae/eeupol/v5y2004i4p395-418.html
   My bibliography  Save this article

Can the EU Anchor Policy Reform in Third Countries?

Author

Listed:
  • Alfred Tovias

    (Hebrew University of Jerusalem, Israel)

  • Mehmet Ugur

    (University of Greenwich, UK)

Abstract

The emerging literature on ‘anchoring’ draws attention to non-conventional benefits of regional integration arrangements, which include increased policy credibility. Nevertheless, this literature tends to view the anchoring of policy reform as an exogenously given option for a reforming country. We demonstrate that anchoring is an endogenously determined choice, which may guarantee neither optimal levels of policy reform nor effective anchoring unless the relevant contracts are both complete and incentive compatible. We examine the economic pillar of the Euro-Med Partnership (EMP) to ascertain the extent to which its contractual provisions satisfy these conditions. Our findings suggest that the EMP leaves too much room for discretion and does not internalize the positive externalities associated with policy reform. These findings enable us to elaborate on why the EU cannot be expected to function as an effective anchor for policy reform for its trading partners.

Suggested Citation

  • Alfred Tovias & Mehmet Ugur, 2004. "Can the EU Anchor Policy Reform in Third Countries?," European Union Politics, , vol. 5(4), pages 395-418, December.
  • Handle: RePEc:sae:eeupol:v:5:y:2004:i:4:p:395-418
    DOI: 10.1177/1465116504047310
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1465116504047310
    Download Restriction: no

    File URL: https://libkey.io/10.1177/1465116504047310?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vreeland,James Raymond, 2003. "The IMF and Economic Development," Cambridge Books, Cambridge University Press, number 9780521016957, September.
    2. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lawrence, Robert Z., 2006. "Recent US Free Trade Initiatives in the Middle East: Opportunities but No Guarantees," Working Paper Series rwp06-050, Harvard University, John F. Kennedy School of Government.
    2. Brach, Juliane, 2006. "Ten Years after: Achievements and Challenges of the Euro-Mediterranean Economic and Financial Partnership," GIGA Working Papers 36, GIGA German Institute of Global and Area Studies.
    3. Nellie Munin, 2021. "Israel's Trade Alliances Strategy: Enjoying the Best of All Worlds," International Journal of Law and Public Administration, Redfame publishing, vol. 4(2), pages 23-37, December.
    4. Frank Schimmelfennig & Hanno Scholtz, 2008. "EU Democracy Promotion in the European Neighbourhood," European Union Politics, , vol. 9(2), pages 187-215, June.
    5. Thilo Bodenstein & Mark Furness, 2009. "Separating the Willing from the Able," European Union Politics, , vol. 10(3), pages 381-401, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nathan M. Jensen, 2004. "Crisis, Conditions, and Capital," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(2), pages 194-210, April.
    2. Alberto Alesina & Guido Tabellini, 2003. "Bureaucrats or Politicians?," Working Papers 238, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    3. Lohmann, Susanne, 1997. "Partisan control of the money supply and decentralized appointment powers," European Journal of Political Economy, Elsevier, vol. 13(2), pages 225-246, May.
    4. Cukierman, Alex & Lippi, Francesco, 2001. "Labour Markets and Monetary Union: A Strategic Analysis," Economic Journal, Royal Economic Society, vol. 111(473), pages 541-565, July.
    5. Ramon Moreno, 2001. "Pegging and stabilization policy in developing countries," Economic Review, Federal Reserve Bank of San Francisco, pages 17-29.
    6. Conconi, Paola & Perroni, Carlo, 2009. "Do credible domestic institutions promote credible international agreements?," Journal of International Economics, Elsevier, vol. 79(1), pages 160-170, September.
    7. Willem Thorbecke, 2002. "A Dual Mandate for the Federal Reserve: The Pursuit of Price Stability and Full Employment," Eastern Economic Journal, Eastern Economic Association, vol. 28(2), pages 255-268, Spring.
    8. Bill Dupor, 2005. "Keynesian Conundrum: Multiplicity and Time Consistent Stabilization," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(1), pages 154-177, January.
    9. Francesca Castellani & Xavier Debrun, 2005. "Designing Macroeconomic Frameworks: A Positive Analysis of Monetary and Fiscal Delegation," International Finance, Wiley Blackwell, vol. 8(1), pages 87-117, March.
    10. Roque B. Fernández, 1991. "What Have Populists Learned from Hyperinflation?," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 121-149, National Bureau of Economic Research, Inc.
    11. Alex Cukierman & Anton Muscatelli, 2001. "Do Central Banks have Precautionary Demands for Expansions and for Price Stability?," Working Papers 2002_4, Business School - Economics, University of Glasgow, revised Mar 2002.
    12. repec:zbw:bofitp:2008_015 is not listed on IDEAS
    13. Mellár, Tamás, 2010. "Válaszút előtt a makroökonómia? [Does macroeconomics face a dilemma?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 591-611.
    14. Thomas Sargent & Noah Williams & Tao Zha, 2006. "Shocks and Government Beliefs: The Rise and Fall of American Inflation," American Economic Review, American Economic Association, vol. 96(4), pages 1193-1224, September.
    15. Pelin Ilbas, 2006. "Optimal Monetary Policy rules for the Euro area in a DSGE framework," Working Papers of Department of Economics, Leuven ces0613, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    16. Ftiti, Zied & Aguir, Abdelkader & Smida, Mounir, 2017. "Time-inconsistency and expansionary business cycle theories: What does matter for the central bank independence–inflation relationship?," Economic Modelling, Elsevier, vol. 67(C), pages 215-227.
    17. Staiger, Robert W. & Tabellini, Guido, 1989. "Rules and discretion in trade policy," European Economic Review, Elsevier, vol. 33(6), pages 1265-1277, July.
    18. Corinne Aaron-Cureau & Hubert Kempf, 2006. "Bargaining over monetary policy in a monetary union and the case for appointing an independent central banker," Oxford Economic Papers, Oxford University Press, vol. 58(1), pages 1-27, January.
    19. Thomas M. Humphrey, 1999. "Mercantilists and classicals: insights from doctrinal history," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 55-82.
    20. Martin, Fernando M., 2015. "Debt, inflation and central bank independence," European Economic Review, Elsevier, vol. 79(C), pages 129-150.
    21. Jérôme Creel & Günes Kamber, 2004. "Debt, deficits and inflation on the road to the EU: the case of Turkey," Revue de l'OFCE, Presses de Sciences-Po, vol. 91(5), pages 157-174.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:eeupol:v:5:y:2004:i:4:p:395-418. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.