Economic Integration Agreements: An International Political Perspective

Mercredi | 2011-03-09

Arslan Tariq RANA

This study examines the effect of bilateral interstate cooperation and economic and geographical characteristics in determining their effect on the different forms of integration agreements. A large sample of 185 countries, for a period 1990 – 2004, to identify domestic and international political and economic motivations contributing in the formation of trading agreements, is analyzed. The results of this study indicate that interstate dyadic cooperation plays a vital role in determining the move towards the higher level of integration arrangement among states. Moreover, the dyadic cooperation becomes less important for the pair when they currently experience the high level of bilateral trade salience.