Hostname: page-component-76fb5796d-5g6vh Total loading time: 0 Render date: 2024-04-25T20:53:06.469Z Has data issue: false hasContentIssue false
  • English
  • Français

Alliances, Preferential Trading Arrangements, and International Trade

Published online by Cambridge University Press:  01 August 2014

Edward D. Mansfield  and
Rachel Bronson
Edward D. Mansfield
Affiliation:
Ohio State University
Rachel Bronson
Affiliation:
Columbia University
Get access Rights & Permissions [Opens in a new window]

Abstract

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.

Type
Articles
Information
American Political Science Review , Volume 91 , Issue 1 , March 1997 , pp. 94 - 107
Copyright
Copyright © American Political Science Association 1997

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Aitken, Norman D. 1973. “The Effect of the EEC and EFTA on European Trade: A Temporal and Cross-Section Analysis.” American Economic Review 63 (12):881–92.Google Scholar
Anderson, James E. 1979. “A Theoretical Foundation for the Gravity Equation.” American Economic Review 69 (03):106–16.Google Scholar
Anderson, Kym, and Blackhurst, Richard. 1993. “Introduction and Summary.” In Regional Integration and the Global Trading System, ed. Anderson, Kym and Blackhurst, Richard. London: Harvester Wheatsheaf.Google Scholar
Belous, Richard S., and Hartley, Rebecca S., eds. 1990. The Growth of Regional Trading Blocs in the Global Economy. Washington, DC: National Planning Association.Google Scholar
Bergstrand, Jeffrey H. 1985. “The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence.” Review of Economics and Statistics 67 (08):474–81.Google Scholar
Bergstrand, Jeffrey H. 1989. “The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade.” Review of Economics and Statistics 71 (02):143–53.Google Scholar
Brada, Josef C., and Mendez, Jose A.. 1983. “Regional Economic Integration and the Volume of Intra-Regional Trade: A Comparison of Developed and Developing Country Experience.” Kyklos 36 (4):589–603.Google Scholar
Bueno de Mesquita, Bruce. 1981. The War Trap. New Haven: Yale University Press.Google Scholar
Cohen, Benjamin J. 1990. “The Political Economy of International Trade.” International Organization 44 (Spring):261–81.Google Scholar
Cohen, Benjamin J. 1991. Crossing Frontiers: Explorations in International Political Economy. Boulder, CO: Westview.Google Scholar
Deardorff, Alan V. 1984. “Testing Trade Theories and Predicting Trade Flows.” In Handbook of International Economics, ed. Jones, Ronald W. and Kenen, Peter B.. Amsterdam: North-Holland.Google Scholar
Deardorff, Alan V. 1995. “Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?” Paper presented at the National Bureau of Economic Research conference on Regionalization of the World Economy, Woodstock, Vermont.Google Scholar
Defense Mapping Agency. 1985. Distances between Ports. 5th ed. Washington, DC: Defense Mapping Agency.Google Scholar
Eichengreen, Barry, and Irwin, Douglas A.. 1995. “The Role of History in Bilateral Trade Flows.” Paper presented at the National Bureau of Economic Research conference on Regionalization of the World Economy, Woodstock, Vermont.Google Scholar
Frankel, , Jeffrey, A. 1993. “Is Japan Creating a Yen Bloc in East Asia and the Pacific?” In Regionalism and Rivalry: Japan and the United States in Pacific Asia, ed. Frankel, Jeffrey A. and Kahler, Miles. Chicago: University of Chicago Press.Google Scholar
Freeland, Richard M. 1985. The Truman Doctrine and the Origins of McCarthyism: Foreign Policy, Domestic Politics, and Internal Security 1946–1948. New York: New York University Press.Google Scholar
Frieden, Jeff. 1988. “Sectoral Conflict and U.S. Foreign Economic Policy.” International Organization 42 (Winter):59–90.Google Scholar
Fitzpatrick, Gary L., and Modlin, Marilyn J.. 1986. Direct-Line Distances. International ed. Metuchen, NJ: Scarecrow.Google Scholar
Gasiorowski, Mark, and Polachek, Solomon W.. 1982. “Conflict and Interdependence: East-West Trade and Linkages in the Era of Detente.” Journal of Conflict Resolution 26 (12):709–29.Google Scholar
Gaubatz, Kurt Taylor. 1996. “Democratic States and Commitment in International Relations.” International Organization 50 (Winter):109–39.Google Scholar
Gowa, Joanne. 1994. Allies, Adversaries, and International Trade. Princeton: Princeton University Press.Google Scholar
Gowa, Joanne, and Mansfield, Edward D.. 1993. “Power Politics and International Trade.” American Political Science Review 87 (06):408–20.Google Scholar
Greene, William H. 1993. Econometric Analysis. 2d ed. New York: Macmillan.Google Scholar
Grenville, J. A. S. 1974. The Major International Treaties 1914–1973. London: Methuen.Google Scholar
Haggard, Stephan, and Moon, Chung-in. 1983. “The South Korean State in the International Economy: Liberal, Dependent, or Mercantile?” In The Antinomies of Interdependence: National Welfare and the International Division of Labor, ed. Ruggie, John Gerard. New York: Columbia University Press.Google Scholar
Hanlon, Joseph. 1986. Beggar Your Neighbor. London: Villiers Publications.Google Scholar
Hartland-Thunberg, Penelope. 1980. Trading Blocs, U.S. Exports, and World Trade. Boulder, CO: Westview.Google Scholar
Helpman, Elhanan, and Krugman, Paul. 1985. Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition and the International Economy. Cambridge: Massachusetts Institute of Technology Press.Google Scholar
Kisanga, Eliawony J. 1991. Industrial and Trade Cooperation in Eastern and Southern Africa. Hong Kong: Avebury.Google Scholar
Kleiman, Ephraim. 1976. “Trade and the Decline of Colonialism.” Economic Journal 86 (09):459–80.Google Scholar
Kornai, Janos. 1992. The Socialist System: The Political Economy of Communism. Princeton: Princeton University Press.Google Scholar
Kurian, George Thomas. 1992. Encyclopedia of the Third World, 4th ed. New York: Facts on File. Vols. 1–3.Google Scholar
Learner, Edward E., and Stern, Robert M.. 1970. Quantitative International Economics. Boston: Allyn and Bacon.Google Scholar
Levy, Jack S. 1989. “The Causes of War: A Review of Theories and Evidence.” In Behavior, Society, and Nuclear War, ed. Tetlock, Philip E. et al. New York: Oxford University Press.Google Scholar
Linnemann, Hans. 1966. An Econometric Study of International Trade Flows. Amsterdam: North-Holland.Google Scholar
Maddala, G. S. 1988. Introduction to Econometrics. New York: Macmillan.Google Scholar
Mansfield, Edward D. 1993. “Effects of International Politics on International Trade.” In Regional Integration and the Global Trading System, ed. Anderson, Kym and Blackhurst, Richard. London: Harvester Wheatsheaf.Google Scholar
Mansfield, Edward D. 1994. Power, Trade, and War. Princeton: Princeton University Press.Google Scholar
Mansfield, Edward D., and Bronson, Rachel. 1997. “The Political Economy of Major-Power Trade Flows.” In The Political Economy of Regionalism, ed. Mansfield, Edward D. and Milner, Helen V.. New York: Columbia University Press.Google Scholar
Mastanduno, Michael. 1992. Economic Containment: CoCom and the Politics of East-West Trade. Ithaca: Cornell University Press.Google Scholar
McKeown, Timothy J. 1991. “A Liberal Trade Order? The Long-Run Pattern of Imports to the Advanced Capitalist States.” International Studies Quarterly 35 (06):151–72.Google Scholar
Morrow, James D. 1990. “Alliances and Asymmetry: An Alternative to the Capability Aggregation Model of Alliances.” American Journal of Political Science 35 (11):904–33.Google Scholar
Orimalade, Adeyinka, and Ubogu, R. E., eds. 1984. Trade and Development in Economic Community of West African States. Delhi, India: Vikas.Google Scholar
Pelzman, Joseph. 1977. “Trade Creation and Trade Diversion in the Council of Mutual Economic Assistance: 1954–1970.” American Economic Review 67 (09):713–22.Google Scholar
Polachek, Solomon W. 1980. “Conflict and Trade.” Journal of Conflict Resolution 24 (03):55–78.Google Scholar
Pollard, Robert A., and Wells, Samuel F. Jr. 1984. “1945–1960: The Era of American Economic Hegemony.” In Economic and World Power: An Assessment of American Diplomacy since 1789, ed. Becker, William H. and Wells, Samuel F. Jr. New York: Columbia University Press.Google Scholar
Pollins, Brian M. 1989a. “Conflict, Cooperation, and Commerce: The Effects of International Political Interactions on Bilateral Trade Flows.” American Journal of Political Science 33 (08): 737–61.Google Scholar
Pollins, Brian M. 1989b. “Does Trade Still Follow the Flag?” American Political Science Review 83 (06):465–80.CrossRefGoogle Scholar
Pomfret, Richard. 1988. Unequal Trade: The Economics of Discriminatory International Trade Policies. Oxford: Basil Blackwell.Google Scholar
Rogowski, Ronald. 1989. Commerce and Coalitions: How Trade Affects Domestic Political Alignments. Princeton: Princeton University Press.Google Scholar
Schott, Jeffrey J., ed. 1989. Free Trade Areas and U.S. Trade Policy. Washington, DC: Institute for International Economics.Google Scholar
Singer, J. David, and Small, Melvin. 1994. Correlates of War Project: International and Civil War Data, 1816–1992. No. 9905. Ann Arbor: Inter-University Consortium for Political and Social Research.Google Scholar
Small, Melvin, and Singer, J. David. 1969. “Formal Alliances, 1816–1965: An Extension of the Basic Data.” Journal of Peace Research 6 (3):257–82.Google Scholar
Small, Melvin, and Singer, J. David. 1982. Resort to Arms: International and Civil Wars, 1816–1980. Beverly Hills, CA: Sage.Google Scholar
Srivastava, Rajendra K., and Green, Robert T.. 1986. “Determinants of Bilateral Trade Flows.” Journal of Business 59 (10):623–40.Google Scholar
Staar, Richard F., et al., eds. 1991. Yearbook on International Communist Affairs. Stanford: Hoover Institution Press.Google Scholar
Summary, Rebecca M. 1989. “A Political-Economic Model of U.S. Bilateral Trade.” Review of Economics and Statistics 71 (02):179–82.Google Scholar
Summers, Robert, and Heston, Alan. 1991. “The Penn World Table (Mark 5): An Expanded Set of International Comparisons.” Quarterly Journal of Economics 106 (05):327–68.Google Scholar
Times Atlas of the World. 1992. 9th ed. New York: Times Books.Google Scholar
Times Concise Atlas of the World. 1972. New York: Times Books.Google Scholar
Tinbergen, Jan. 1962. Shaping the World Economy: Suggestions for an International Economic Policy. New York: The Twentieth Century Fund.Google Scholar
Waltz, Kenneth. 1979. Theory of International Politics. Reading, MA: Addison-Wesley.Google Scholar
White, Halbert. 1980. “A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity.” Econometrica 48 (05):817–38.Google Scholar
Williamson, Oliver E. 1985. The Economic Institutions of Capitalism. New York: Free Press.Google Scholar
Winters, L. Alan, and Wang, Zhen Kun. 1994. Eastern Europe's International Trade. Manchester: Manchester University Press.Google Scholar
Yang, Jai-Hoon. 1986. “U.S.-Korean Economic and Trade Relations: Building a New ‘Special Relationship.’” In United States-Korea Relations, ed. Scalapino, Robert A. and Sung-joo, Han. Research Papers and Policy Studies No. 19. Berkeley: Institute of East Asian Studies, University of California.Google Scholar
Yarbrough, Beth V., and Yarbrough, Robert M.. 1992. Cooperation and Governance in International Trade: The Strategic Organizational Approach. Princeton: Princeton University Press.Google Scholar