Aminian, NathalieFung, K.C.Ng, Francis2012-05-292012-05-292008-03https://hdl.handle.net/10986/6562This paper provides an analysis of the two channels of regional integration: integration via markets and integration via agreements. Given that East Asia and Latin America are two fertile regions where both forms of integrations have taken place, the authors examine the experiences of these two areas. There are four related results. First, East Asia had been integrating via markets long before formal agreements were in vogue in the region. Latin America, by contrast, has primarily used formal regional trade treaties as the main channel of integration. Second, despite the relative lack of formal regional trade treaties until recently, East Asia is more integrated among itself than Latin America. Third, from a purely economic and trade standpoint, the proper sequence of integrations seems to be first integrating via markets and subsequently via formal regional trade agreements. Fourth, regional trade agreements often serve multiple constituents. The reason why integrating via markets first can be helpful is because this can give stronger political bargaining power to the outward-looking economic-oriented forces within the country.CC BY 3.0 IGOANDEAN PACTANTI-TRADEARBITRATORBARGAINING POWERBARRIERS TO TRADEBILATERAL AGREEMENTSBILATERAL TRADEBILATERAL TRADE AGREEMENTBILATERAL TRADE AGREEMENTSBILATERAL TREATIESBONDBOND MARKETBOND MARKETSCENTRAL AMERICACENTRAL AMERICANCENTRAL BANKCOMMON MARKETCOMPARATIVE ADVANTAGECOMPARATIVE DISADVANTAGECONTRACTING PARTIESCOOPERATION AGREEMENTSCURRENCYCUSTOMSCUSTOMS PROCEDURESCUSTOMS UNIONDEREGULATIONDEVALUATIONSDEVELOPING COUNTRIESDEVELOPING COUNTRYDISPUTE SETTLEMENTDYNAMIC EFFECTSE-COMMERCEECONOMIC AGREEMENTSECONOMIC COMMUNITYECONOMIC COOPERATIONECONOMIC CRISESECONOMIC CRISISECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC INTEGRATIONSECONOMIC LIBERALIZATIONECONOMIC PARTNERSHIP AGREEMENTECONOMIC POLICYECONOMIC REGIONALISMECONOMIC STABILIZATIONEQUILIBRIUMEUROPEAN UNIONEXPORT MARKETEXPORT PERFORMANCEEXPORT VALUEEXPORTERSEXPORTING COUNTRYEXPORTSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INTEGRATIONFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN POLICYFOREIGN TRADEFOREIGN TRADE POLICYFORMAL TRADEFREE TRADEFREE TRADE AGREEMENTFREE TRADE AGREEMENTSFREE TRADE AREAFREE TRADE AREASFREE TRADE ARRANGEMENTFREE TRADE ASSOCIATIONGLOBAL ECONOMYGLOBAL TRADINGGLOBALIZATIONHARMONIZATIONHOME COUNTRYIMPORT SUBSTITUTIONIMPORT SUBSTITUTION INDUSTRIALIZATIONIMPORTSINCREASING TRADEINDUSTRIAL COUNTRYINDUSTRIAL POLICYINTERNATIONAL BANKINTERNATIONAL ECONOMICSINTERNATIONAL INSTITUTIONSINTERNATIONAL MARKETINTERNATIONAL MARKETSINTERNATIONAL ORGANIZATIONSINTERNATIONAL TRADEINTERNATIONAL TRADE RELATIONSINTRA-REGIONAL TRADEINTRAREGIONAL TRADEINVESTMENT AGREEMENTSINVESTMENT LIBERALIZATIONINVESTMENT POLICYLATIN AMERICANLEGAL INSTRUMENTSLEGAL TERMSLEGAL TREATIESLIBERALIZATION OF TRADELOBBYINGMARKET ACCESSMARKET CONDITIONSMARKET DEVELOPMENTMARKET INTEGRATIONMEMBER COUNTRIESMONETARY UNIONMOST FAVORED NATIONMULTILATERAL AGREEMENTSMULTILATERAL RULESMULTILATERAL SYSTEMMULTILATERAL TRADEMULTILATERAL TRADE LIBERALIZATIONMULTILATERAL TRADE NEGOTIATIONSMULTILATERALISMMUTUAL RECOGNITIONOPEN REGIONALISMOPEN TRADEOPENNESSPACIFIC REGIONPARTNER COUNTRIESPOLICY MAKERSPOLICY REFORMSPOLICY RESEARCHPOLITICAL ECONOMYPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPRIVATE SECTORPRIVATIZATIONPROTECTIONISTRAPID GROWTHREGIONAL AGREEMENTREGIONAL AGREEMENTSREGIONAL ARRANGEMENTSREGIONAL COOPERATIONREGIONAL COORDINATIONREGIONAL GROUPINGREGIONAL GROUPINGSREGIONAL INITIATIVESREGIONAL INTEGRATIONREGIONAL INTEGRATIONSREGIONAL TRADEREGIONAL TRADE AGREEMENTREGIONAL TRADE AGREEMENTSREGIONAL TRADE ARRANGEMENTSREGIONAL TRADE INTEGRATIONREGIONAL TRADING PARTNERSREGIONALISMREGIONALIZATIONREPUTATIONSECURITY INTERESTSSMALL COUNTRYSOUTH AMERICATECHNICAL COOPERATIONTECHNICAL STANDARDSTRADE BALANCETRADE BARRIERSTRADE BLOCSTRADE CREATIONTRADE DISPUTETRADE DIVERSIONTRADE FACILITATIONTRADE IN GOODSTRADE IN SERVICESTRADE INTEGRATIONTRADE INTENSITYTRADE INTENSITY INDICESTRADE LAWSTRADE LIBERALIZATIONTRADE LIBERALIZATIONSTRADE LINKSTRADE NEGOTIATIONSTRADE POLICIESTRADE POLICYTRADE POLICY FORMULATIONTRADE POLICY REVIEWTRADE RELATIONSTRADE RELATIONSHIPTRADE RELATIONSHIPSTRADE STRATEGYTRADE TREATIESTRADE VOLUMETRADING BLOCSTRADING PARTNERSTRANSPORT EQUIPMENTTREATIESTRINIDAD AND TOBAGOUNILATERAL TRADEUNILATERAL TRADE LIBERALIZATIONUNION CUSTOMSVERTICAL SPECIALIZATIONWORLD ECONOMYWORLD EXPORTSWORLD OUTPUTWORLD TRADEWORLD TRADE ORGANIZATIONWORLD TRADING SYSTEMWorld Bank10.1596/1813-9450-4546