On the relationship between the breadth of preferential trading arrangements and trade flows

World Economy ◽  
2018 ◽  
Vol 41 (4) ◽  
pp. 1088-1110 ◽  
Author(s):  
Rod Falvey ◽  
Neil Foster-McGregor
Keyword(s):  
Trade Flows ◽  
Preferential Trading ◽  
Preferential Trading Arrangements ◽  
The Relationship

Alliances, Preferential Trading Arrangements, and International Trade

1997 ◽  
Vol 91 (1) ◽  
pp. 94-107 ◽  
Author(s):  
Edward D. Mansfield ◽  
Rachel Bronson
Keyword(s):  
International Trade ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Major Power ◽  
Political Incentives ◽  
Bilateral Trade Flows ◽  
Quantitative Analyses ◽  
Preferential Trading ◽  
Preferential Trading Arrangements ◽  
Type Of Institution

We analyze the effects of alliances and preferential trading arrangements on bilateral trade flows. Both factors are likely to promote trade among members, but we argue that the interaction between them is central to explaining patterns of commerce. The combination of an alliance, which creates political incentives for participants to engage in trade, and a commercial institution, which liberalizes trade among members, is expected to provide a considerable impetus to commerce among parties to both. The results of our quantitative analyses support these arguments. Both alliances and preferential trading arrangements strongly affected trade from 1960 to 1990, and allies that included a major power conducted considerably more trade than their nonmajor-power counterparts. Moreover, the interaction between alliances and preferential trading arrangements is fundamental to explaining patterns of bilateral commerce: Parties to a common preferential trading arrangement and a common alliance engage in markedly greater trade than do members of either type of institution but not both.

Trade Blocs, Trade Flows, and International Conflict

2000 ◽  
Vol 54 (4) ◽  
pp. 775-808 ◽  
Author(s):  
Edward D. Mansfield ◽  
Jon C. Pevehouse
Keyword(s):  
World War Ii ◽  
Broad Class ◽  
Empirical Studies ◽  
Political Conflict ◽  
Trade Flows ◽  
Trade Blocs ◽  
Quantitative Results ◽  
Preferential Trading Arrangements ◽  
The Relationship ◽  
Common Markets

The relationship between foreign trade and political conflict has been a persistent source of controversy among scholars of international relations. Existing empirical studies of this topic have focused on the effects of trade flows on conflict, but they have largely ignored the institutional context in which trade is conducted. In this article we present some initial quantitative results pertaining to the influence on military disputes of preferential trading arrangements (PTAs), a broad class of commercial institutions that includes free trade areas, common markets, and customs unions. We argue that parties to the same PTA are less prone to disputes than other states and that hostilities between PTA members are less likely to occur as trade flows rise between them. Moreover, we maintain that heightened commerce is more likely to inhibit conflict between states that belong to the same preferential grouping than between states that do not. Our results accord with this argument. Based on an analysis of the period since World War II, we find that trade flows have relatively little effect on the likelihood of disputes between states that do not participate in the same PTA. Within PTAs, however, there is a strong, inverse relationship between commerce and conflict. Parties to such an arrangement are less likely to engage in hostilities than other states, and the likelihood of a military dispute dips markedly as trade increases between them.

scholarly journals The Rise of Bilateralism in Trade and its Implications for Pakistan

2009 ◽  
Vol 14 (Special Edition) ◽  
pp. 111-133
Author(s):  
Irfan ul Haque Irfan ul Haque
Keyword(s):  
Free Trade Area ◽  
Trade Agreement ◽  
Most Favored Nation ◽  
Economic Interests ◽  
Trade Area ◽  
Bilateral Relations ◽  
The Us ◽  
Preferential Trading ◽  
Post War ◽  
Preferential Trading Arrangements

This paper examines and critiques the worldwide mushrooming of preferential trading arrangements and traces its implications for Pakistan. It points out that this development is fundamentally contrary to the principle of most-favored-nation (MFN) treatment, which was the cornerstone of the post-war multilateral trading system as embodied in the General Agreement on Tariffs and Trade (GATT) and by the World Trade Organization (WTO). The causes of the rise in bilateral and regional trading arrangements are discussed and it is shown that they pose a real threat to many relatively small economies, including Pakistan. The paper discusses the various preferential trade agreements Pakistan has already signed. It notes that, with the exception of its trade agreement with China, Pakistan has not succeeded in concluding preferential trading arrangements with any of the strategically and systemically more important countries, viz., the US, European Union, and Gulf Cooperation Council (GCC). The South Asia Free Trade Area (SAFTA) could potentially be of considerable importance for Pakistan’s long-term economic growth, but this potential might not be realized if India and Pakistan fail to overcome their mutual differences. Finally, the paper explores steps that might be taken to promote Pakistan’s economic interests in its bilateral relations.

The theory of preferential trading arrangements

1986 ◽  
Vol 122 (3) ◽  
Author(s):  
Richard Pomfret
Keyword(s):  
Preferential Trading ◽  
Preferential Trading Arrangements

scholarly journals Preferential trading arrangements and industrial location

1997 ◽  
Vol 43 (3-4) ◽  
pp. 347-368 ◽  
Author(s):  
Diego Puga ◽  
Anthony J. Venables
Keyword(s):  
Industrial Location ◽  
Preferential Trading ◽  
Preferential Trading Arrangements
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