This thesis breaks down the reason for deep economic integration to two main structures: trade asymmetry and actorness.
The data for trade asymmetry and actorness were gathered for 10 dyads of regional organizations or groups of countries that trade with each other.
These data form the base of a QCA model that brings the result that actorness and asymmetry both are sufficient for a deep integration among the trade relations of regional organizations.
Table of Contents
1 Introduction
1.1 Problem
1.2 Goal of the Thesis
1.3 Methodology
2 Literature
2.1 Asymmetries and Power
2.2 Actorness in Interregionalism
2.2.1 Types of Interregional Relations
2.2.2 Institutionalization
3 Methodology
3.1 Qualitative Comparative Analysis
3.2 Fuzzy-Set QCA
3.2 Operationalization of Depth
3.3 Sample and Case Selection
3.4 Methodology for the case study
4 The Empirical Chapter
4.1 Measurement of the Conditions
4.1.1 Condition 1: Asymmetric Power
4.1.2 Condition 2: Actorness
4.2 Results of the QCA-Model
4.2.1 Fuzzy-set membership and calibration
4.2.2 Tests for Necessity and Sufficiency – transformational calibration
4.2.3 Tests for direct calibration
4.2.4 Assessment of the Results
4.3 Case Study: The EFTA-Central America PTA
4.4 Future PTAs: A short prognosis
5 Conclusion and further remarks
Research Objectives and Themes
This thesis investigates the conditions for deep economic integration within regio-regio Preferential Trade Agreements (PTAs). By analyzing ten interregional cases, the study addresses the overarching research question of how power asymmetries and the actorness of regional organizations influence the depth of integration in trade deals, particularly outside the traditional multilateral framework of the WTO.
- Analysis of power asymmetry as a driver for deep regional integration.
- Evaluation of regional actorness, including institutionalization, recognition, and interaction.
- Application of Qualitative Comparative Analysis (QCA) to assess causal paths to integration.
- Investigation of the deviant case of the EFTA-Central America PTA.
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2.1 Asymmetries and Power
Political scientists see the sources for liberal trade less in the welfare effects of trade itself, but more in the power structures of the international arena, especially the power asymmetry between states. Global economic decline, but also the fall of hegemonies cause the rise of regional trade agreements (Mansfield 1998: 537). International trade relations, dependencies and power are deeply interlinked. The best situation for country A is to be an (almost) irreplaceable trading partner. If it is extremely costly for countries to trade with other countries than A or to replace A as a supplier or demander, scholars speak of asymmetric dependence in the field of trade (Hirschman 1980: 13-18). Such dependencies give country A power over its trading partners, making “commerce […] an alternative to war” (Ibid.: 15), because they can affect the economic wellbeing of their partners quite directly. This makes trade an instrument for coercion.
The power to coerce other actors at an acceptable cost to do something they would not do otherwise is one of the most basic definitions of power (e.g. in Keohane and Nye, 1999: 11). For Keohane and Nye (ibid.: 8-11) interdependence is a key structural element of international relations to understand power asymmetries. Interdependence is the state of mutual dependence, but not limited to beneficial cases of mutual dependence only. The standard cases are asymmetric dependent relations between states, meaning that country A needs country B more than vice versa for some reason. In these asymmetric relations lie the roots of power in the international arena.
Summary of Chapters
1 Introduction: Discusses the current state of free trade, the rise of protectionism, and defines the problem of regionalism and the research goals regarding interregional PTAs.
2 Literature: Reviews the debate on multilateralism versus regionalism and introduces the key concepts of power asymmetry and actorness in the context of interregionalism.
3 Methodology: Explains the Qualitative Comparative Analysis (QCA) method and the operationalization of depth and condition indicators for the study.
4 The Empirical Chapter: Details the measurement of conditions, presents the results of the QCA model, and provides a specific case study on the EFTA-Central America PTA.
5 Conclusion and further remarks: Summarizes the findings on sufficient conditions for deep PTAs and reflects on the limitations and future prospects for interregional trade integration.
Keywords
Interregionalism, Preferential Trade Agreements, PTAs, Regional Organizations, Qualitative Comparative Analysis, QCA, Asymmetry, Power, Actorness, Economic Integration, World Trade System, Trade Dependency, Regio-Regio, Multilateralism, Regional Trade Agreements.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on explaining the conditions that lead to "deep integration" in trade agreements negotiated between regional organizations or groups of countries, known as regio-regio or interregional PTAs.
What are the primary theoretical themes?
The study centers on the concepts of power asymmetry between negotiating parties and the actorness of the involved regional organizations, examining how these factors influence the outcomes of trade negotiations.
What is the primary research goal?
The goal is to determine whether high levels of power asymmetry or high levels of regional actorness are sufficient or necessary conditions for achieving deep integration in trade agreements.
Which scientific methodology is utilized?
The author employs a Qualitative Comparative Analysis (QCA), specifically a fuzzy-set QCA model, to compare ten interregional PTAs and identify causal patterns.
What topics are discussed in the main body?
The main body covers the theoretical debate between regionalism and multilateralism, the definition and measurement of conditions (asymmetry and actorness), the empirical QCA modeling, and a qualitative case study on the EFTA-Central America PTA.
Which keywords best characterize the research?
Key terms include Interregionalism, Preferential Trade Agreements (PTAs), Qualitative Comparative Analysis, Asymmetry, Actorness, and economic integration.
Why did the author conduct a specific case study on EFTA-Central America?
The author identified this PTA as a "deviant case" within the QCA model, as it demonstrated deep integration despite low scores for asymmetry and actorness, necessitating a more detailed investigation into the bargaining process.
How is the "depth" of a trade agreement measured?
The author uses the "Design of Trade Agreements" (DESTA) database, which quantifies PTA depth using an additive index based on provisions beyond tariff reductions, such as intellectual property, services, and public procurement.
- Quote paper
- Stefan Heinzmann (Author), 2018, The Next Level of Regionalism. Deep Integration of Regio-Regio PTAs, Munich, GRIN Verlag, https://www.grin.com/document/449744
