Arbeitspapier
The ties that bind: Geopolitical motivations for economic integration
Economic determinants of economic integration agreements (EIAs) have received ample attention in the economic literature. Political motivations for such agreements have been mostly studied as functions of domestic politics or in the context of conflict. In this paper I suggest a different narrative. Economic integration could be used as an instrument of foreign policy, where political considerations influence the choice of contracting partners. I sketch a simple model that exhibits the proposed mechanism in which a big country chooses between alternatives for integration in terms of economic and political welfare gains, while the small country is indifferent between possible partners for integration. In the empirical part I use a novel dataset on political events to test the predictions of the model and find evidence for the hypothesis that there is more to economic integration than "just trade". Geopolitical considerations play a determining role in the choice of the contracting partner country and the depth of economic integration.
- Language
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Englisch
- Bibliographic citation
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Series: Kiel Working Paper ; No. 2085
- Classification
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Wirtschaft
Trade Policy; International Trade Organizations
Economic Integration
International Conflicts; Negotiations; Sanctions
International Agreements and Observance; International Organizations
- Subject
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trade agreements
geopolitics
gravity equation
event data
- Event
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Geistige Schöpfung
- (who)
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Hinz, Julian
- Event
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Veröffentlichung
- (who)
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Kiel Institute for the World Economy (IfW)
- (where)
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Kiel
- (when)
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2017
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hinz, Julian
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2017
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Cutting more ties that bind : releasing from inhibiting patterns
The Ties that Bind: Monetary Policy and Government Debt Management
Cutting the ties that bind : growing up and moving on
From ties that bind to ties that relieve : Eigensinn and Bindung among industrial workers in 20th Century Germany
The ties that bind : accommodating diversity in Canada and the European Union
Ties That Bind: Employment Protection and Labor Market Outcomes in Latin America
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