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Political Economy of Trade Integration

— A Mechanism of Central European Integration

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The Political Economy of Trade Integration

Part of the book series: Contributions to Economics ((CE))

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Abstract

Chapter II combines a political economy model with a trading block model, where domestic interest groups lobby their government to proceed with sequential trade integration. In theory, trade integration is not politically sustainable when consumers’ and producers’ interests arc opposed, unless a mechanism is designed which links gradual trade integration with factor reallocation and which worsens the best alternative to integration. In practice, it appears that regional integration in Central Europe implements such a mechanism, but that the eastern enlargement of the European Union is blocked by special interests of a few producers and some national governments.

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Authors and Affiliations

  1. International Monetary Fund, 700 19th Street, N. W., 20431, Washington, DC, USA

    Dr. Oliver Fratzscher

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  1. Dr. Oliver Fratzscher
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© 1996 Physica-Verlag Heidelberg

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Fratzscher, O. (1996). Political Economy of Trade Integration. In: The Political Economy of Trade Integration. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-61490-3_2

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  • DOI: https://doi.org/10.1007/978-3-642-61490-3_2

  • Publisher Name: Physica-Verlag HD

  • Print ISBN: 978-3-7908-0945-9

  • Online ISBN: 978-3-642-61490-3

  • eBook Packages: Springer Book Archive

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