Political stability and trade agreements: Evidence for ‘endgame FTAs’

Rotunno, Lorenzo

doi:10.1016/j.ejpoleco.2016.10.006

Cited by 9 publications

(8 citation statements)

References 29 publications

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“…Urata and Kiyota (2003) demonstrated the positive impact of an East Asia FTA on the GDP and welfare of member countries. Rotunno (2016) found that countries are more likely to sign FTAs after the unexpected exit of their leaders when political instability is high. Shujiro and Misa (2007) used the estimation of a gravity equation to discern the impacts of FTAs on bilateral trade flows, i.e., trade creation and diversion effects.…”

Section: Literature Reviewmentioning

confidence: 99%

The trade policy effect in international trade: case of Pakistan

Yeo

Deng

2019

Economic Structures

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Although more and more countries adopt the idea of free trade, protectionism has rebounded in the wake of the economic crisis of 1929 and remains a reality of our days. The principle of "learning by doing", national security or unfair competition has also been proposed over time to justify the use of protectionism. Liberalization (free trade policy) and protectionism are two fundamental instruments for governments to control international trade, in other words, two different types of foreign trade policy. Free trade policy is the minimum of state intervention in foreign trade, developed by free-market forces of supply and demand, while protectionism provides for the protection of the internal market from the international competition through the use of tariff and non-tariff instruments. Protectionism according to Nicita et al. (2013) refers to the measurement taken by the government to promote the local industry in the face of international competition. Baldwin (1970) defines as any measure (public or private) that causes internationally traded goods and services, or devoted to the

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Section: Literature Reviewmentioning

confidence: 99%

The trade policy effect in international trade: case of Pakistan

Yeo

Deng

2019

Economic Structures

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“…Second, we use an alternative measure of political instability to check whether our results are not driven by the particular measure used in the main regressions. For this purpose, we use the Archidos dataset (Goemans et al, ) which contains information about effective political leaders and their entry and exit for a broad set of countries and a long time span and which has been used by a number of studies to compute various measures of political turnover (see, for example, Besley et al, ; Treisman, ; Rotunno, ). We compute the frequency of irregular changes of the effective political leader of a country (defined as the ratio of the number of irregular changes to the total number of (regular and irregular) changes of effective political leader and use it as a proxy for political turnover associated with political instability.…”

Section: Geographical Neighbor Impact On Political Instabilitymentioning

confidence: 99%

Shall We Riot Too? The Geographical Neighbor Impact on Political Instability

Grechyna¹

2018

Kyklos

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“…In the international system, the existing ties and characteristics of states can influence the decisions of states to form new ties. Although many studies examine the causes and consequences of international agreements [15][16][17][18][19][20], most of them apply conventional regressions without considering crucial network properties, such as triadic closures and preferential attachments. Recently, several works have incorporated network properties and analyzed the dynamics of international agreements by applying a social network analysis [1,6,21].…”

Section: Introductionmentioning

confidence: 99%

Multiplex Relations between States: Coevolution of Trade Agreements and Political Alliances

2019

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The nature of interdependence between states encourages them to establish cooperation in different fields, leading to multiple relations. The policy alignments of states on trade and political relations can be regarded as the most critical agenda in a globalized world. Accounting for the linkages between economic and political issues, this study focuses on the two relational ties, (i) free trade agreements (FTAs) as economic cooperation and (ii) political alliances (PAs) as political cooperation. In addition, it evaluates the coevolution of FTAs and PAs by employing a multiplex stochastic actor-oriented model with longitudinal data of 160 countries during the period from 1990 to 2012. The results show that the presence of a PA inspires the formation of an FTA, but present no clear evidence that the presence of an FTA promotes the formation of a PA. Our analysis also shows that a state prefers to form both FTAs and PAs with trade hub partners that have more FTAs but prefers to form only PAs with political hub partners that have more PAs. This study argues that such asymmetric effects between FTAs and PAs emphasizes the preferences of states for liberalizing trade and connecting with partners that have many FTAs.

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Political stability and trade agreements: Evidence for ‘endgame FTAs’

Cited by 9 publications

References 29 publications

The trade policy effect in international trade: case of Pakistan

The trade policy effect in international trade: case of Pakistan

Shall We Riot Too? The Geographical Neighbor Impact on Political Instability

Multiplex Relations between States: Coevolution of Trade Agreements and Political Alliances

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