New institutionalism meets international political economy: a new approach to the study of regional integration dynamics in- and outside of Europe

Abstract

"Regional integration in- and outside Europe is a theoretical and empirical puzzle for Political Scientists. After 50 years of integration studies, there is still a gap in the academic discussion. On the one hand, New Institutionalism mainly discusses the successful example of European integration and argues about the influence of supranational vs. intergovernmental institutions. On the other hand, International Political Economy debates the emergence of more and more preferential trade agreements around the world, but neglects the dynamic of regional integration. In order to overcome these deficits, this paper proposes a new approach to regional economic integration, which simultaneously overcomes the Eurocentrism of Institutionalism and the static nature of Political Economy approaches. According to this view, regional economic integration results from demand and supply factors. Thereby, demand and supply of regional integration needs not be the same as in Europe. Whereas comparative cost advantages and economies of scale are important factors for the demand for regional integration in Europe and North America, the attraction of foreign direct investments and development aid may be more important for regions of the South. And whereas common institutions are a driving force behind integration in Europe and South America, regional integration in North America and Southern Africa may be more supplied by regional hegemony. Integration dynamic may evolve if feedback effects occur and one or more of the demand and supply factors are reinforced due to previous integration steps. But such 'spill-over' may also look different than the European example, as the economic and institutional preconditions differ. After developing such a theoretical approach, the proposed paper will illustrate its hypotheses using the example of the EU, the NAFTA, the MERCOSUR, the SADC and the ASEAN." (author's abstract)