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The New Regionalism and Policy Interdependence

Author

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  • Baccini, Leonardo

    (IMT Lucca)

  • Dür, Andreas

    (University of Salzburg)

Abstract

Since 1990 the number of preferential trade agreements has increased rapidly. Our argument explains this phenomenon, known as the new regionalism, as a result of competition for market access. Exporters that face trade diversion because of their exclusion from a preferential trade agreement concluded by foreign countries push their governments into signing an agreement with the country in which their exports are threatened. We test our argument in a quantitative analysis of the proliferation of preferential trade agreements among 167 countries between 1990 and 2007. The finding that competition for market access is a major driving force of the new regionalism is a contribution to the literature on regionalism and to broader debates about global economic regulation.

Suggested Citation

  • Baccini, Leonardo & Dür, Andreas, 2010. "The New Regionalism and Policy Interdependence," Working Papers in Economics 2010-8, University of Salzburg.
    • Handle: RePEc:ris:sbgwpe:2010_008
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    Cited by:

    1. Schüle, Ulrich & Kleisinger, Tatiana, 2016. "The "Spaghetti Bowl": A case study on processing rules of origin and rules of cumulation," UASM Discussion Paper Series 2/2016, University of Applied Sciences Mainz.

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