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Regionalism

Author

Listed:
  • Burfisher, Mary E.
  • Robinson, Sherman
  • Thierfelder, Karen
Abstract
"In this paper, we review the debate on "new regionalism," focusing on the tools used to evaluate regional trade agreements (RTAs). We find that much analysis uses tools from old trade theory in the Viner-Meade tradition, focusing on trade creation, trade diversion, and terms-of-trade effects. These tools are adequate for the analysis of the effects of removing commodity trade barriers ("shallow" integration), but the comfortable Viner-Meade framework misses many of the impacts associated with new regionalism, which typically involves "deep integration," often between developing and developed countries. A framework for analyzing new regionalism should include dynamic changes such as trade-productivity links and endogenous growth theory, international factor mobility, the role of imperfect competition, rent seeking behavior, and political-economy considerations such as potential conflicts between regionalism and multilateralism. Agriculture poses problems for new regionalism because of high tariffs, the use of domestic subsidies and entrenched special interest groups, but the role of trade liberalization on its productivity is often overlooked. For developing countries, a crucial issue is whether and how regionalism can be part of a successful development strategy. While "new trade theory" is concerned with a number of the issues relevant to new regionalism, and is providing new tools, the work is eclectic and is far from providing a unified framework for empirical analysis of new regionalism. Both theoretical and empirical research is needed to improve the reach and scope of new trade theory applied to issues of new regionalism." Authors' Abstract

Suggested Citation

  • Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2004. "Regionalism," MTID discussion papers 65, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:mtiddp:65
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    References listed on IDEAS

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    Cited by:

    1. Innwon Park & Soonchan Park, 2009. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," Asian Economic Papers, MIT Press, vol. 8(2), pages 119-139, Spring.
    2. George Stubos & Ioannis Tsikripis, 2005. "Regional Integration Challenges in South East Europe: Banking Sector Trends," Working Papers 24, Bank of Greece.
    3. Pavel Neumann, 2008. "Fragmentation versus Unity of the World Economy [Fragmentace versus jednota světové ekonomiky]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2008(2), pages 70-89.
    4. Nielsen, Chantal Pohl & Robinson, Sherman & Thierfelder, Karen, 2002. "Trade in genetically modified food: A survey of empirical studies," TMD discussion papers 106, International Food Policy Research Institute (IFPRI).
    5. Doan, Darcie & Goldstein, Andrew & Zahniser, Steven & Vollrath, Thomas L. & Bolling, H. Christine, 2004. "North American Integration In Agriculture: A Survey Paper," North American Agrifood Integration: Situation and Perspectives, May 2004, Cancun, Mexico 16730, Farm Foundation.
    6. Nin Pratt, Alejandro & Diao, Xinshen & Bahta, Yonas, 2009. "How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints," IFPRI discussion papers 888, International Food Policy Research Institute (IFPRI).
    7. John Whalley & J. Clark Leith, 2003. "Competitive Liberalization and a US-SACU FTA," NBER Working Papers 10168, National Bureau of Economic Research, Inc.
    8. A.R. Kemal, 2004. "Exploring Pakistan’s Regional Economic Cooperation Potential," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 313-334.

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    Keywords

    Regionalism. ; Regional trade agreements ; Terms of trade. ;
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