Integration of Markets vs. Integration by Agreements

Aminian, Nathalie ; Fung, K.C. ; Ng, Francis

World Bank, Washington, DC

关键词: ANDEAN PACT;    ANTI-TRADE;    ARBITRATOR;    BARGAINING POWER;    BARRIERS TO TRADE;   

DOI  :  10.1596/1813-9450-4546
RP-ID  :  WPS4546

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper provides an analysis of thetwo channels of regional integration: integration viamarkets and integration via agreements. Given that East Asiaand Latin America are two fertile regions where both formsof integrations have taken place, the authors examine theexperiences of these two areas. There are four relatedresults. First, East Asia had been integrating via marketslong before formal agreements were in vogue in the region.Latin America, by contrast, has primarily used formalregional trade treaties as the main channel of integration.Second, despite the relative lack of formal regional tradetreaties until recently, East Asia is more integrated amongitself than Latin America. Third, from a purely economic andtrade standpoint, the proper sequence of integrations seemsto be first integrating via markets and subsequently viaformal regional trade agreements. Fourth, regional tradeagreements often serve multiple constituents. The reason whyintegrating via markets first can be helpful is because thiscan give stronger political bargaining power to theoutward-looking economic-oriented forces within the country.