Determinants of Deep Integration: Examining Socio-political Factors

Abstract

This research has three main aims: firstly, to empirically analyse the determinants of different levels of integration by re-examining the evidence presented by Baier and Bergstrand (Journal of International Economics 64(1):29-63, 2004) in the JIE 64 (1); secondly, to analyse the importance of additional factors, in particular socio-political factors; and thirdly, to analyse the dynamics of the EU integration process. The results show that although economic and geographical factors are the most important explanatory factors for the probability of regional integration agreement formation or enhancement, socio-political variables also contribute to explain the formation of regional integration agreements. Democracies and countries with a higher level of economic freedom are more likely to form or enhance RIAs.