Thesis advisor: David Deese / The proliferation of regional trade agreements is a well-documented phenomena. This thesis focuses on the relatively unexplored area of non-economic motivations states may have for joining regional trade agreements. It uses the formation of the North American Free Trade Agreement (NAFTA) and the negotiation of the European Community's Single European Act as case studies. / Thesis (BA) — Boston College, 2004. / Submitted to: Boston College. College of Arts and Sciences. / Discipline: Political Science. / Discipline: College Honors Program.

O trabalho apresentado trata do comércio entre os Estados de Goiás e São Paulo durante a Primeira República, comércio este feito por meio de um importante circuito comercial que se intensificou a partir das últimas décadas do século XIX e as primeiras do século XX, com a expansão da economia cafeeira paulista e o desdobramento de seu setor de transportes rumo a Goiás. Por meio da Companhia Mogiana de Estradas de Ferro, continuada pela Estrada de Ferro Goiás, o setor de transportes paulistas se desdobrou, fazendo do Estado de Goiás uma das regiões às quais o complexo cafeeiro ligava-se e recorria em momentos em que a produção paulista passava por algum percalço. Nesse contexto, quando a economia paulista aumentava a demanda por produtos que os goianos podiam fornecer principalmente o gado e o arroz o circuito goiano reagia, aumentando a sua produção. Assim, ao mesmo tempo em que os paulistas podiam recorrer a Goiás, os goianos viram-se ligados à economia regional mais dinâmica do período, onde encontraram grande mercado para os seus produtos, tornando-se um dos maiores produtores de gado e arroz do Brasil na década de 1920. Para a realização do trabalho, foram consultados um amplo grupo de fontes, cujas principais são as Mensagens dos Presidentes de Estado de Goiás, São Paulo e Minas Gerais já que o circuito goiano cruzava o Triângulo Mineiro relatórios das ferrovias envolvidas, jornais locais, atas de câmaras municipais, inventários post-mortem etc. / The present work deals with trade between the states of Goiás and São Paulo during the First Republic, this trade done through an important commercial circuit that has intensified since the last decades of the nineteenth century and early twentieth century, with the expansion of the coffee in São Paulo state and the unfolding of its transport sector towards Goiás, through Mogiana Railroads, continued by Goiás Railroad, the transportation of Paulista sector unfolded, making the State of Goiás a region in which the coffee complex turned to in times when São Paulo production passed through setbacks . In this context, when the state economy increased the demand for products that Goiás could provide - mainly cattle and rice - Goiás circuit reacted by increasing their production. Thus , while the Paulistas could turn to Goiás, Goiás people found themselves linked to the most dynamic regional economic period , where they found large market for their products , making it one of the largest producers of cattle and rice in Brazil in the 1920s . To conduct the study, we found a large group of sources , which are the main messages from the Presidents of the State of Goiás, São Paulo and Minas Gerais - since the goiano circuit crossed Triangulo Mineiro - reports on the involved railroads, local newspapers, minutes of municipalities, postmortem inventories etc.

Although it is accepted that Phoenician colonization occurred on Sardinia by the 9th century B.C., it is possible that contact between Sardinia‟s indigenous population and the Levantine region occurred in the Late Bronze Age (LBA). Eastern LBA goods found on the island are copper oxhide ingots and Aegean pottery. Previously, it has been suggested that Mycenaeans were responsible for bringing the eastern goods to Sardinia, but the presence of Aegean pottery shards does not confirm the presence of Mycenaean tradesmen. Also, scholars of LBA trade have explained the paucity of evidence for a Mycenaean merchant fleet. Interpretations of two LBA shipwrecks, Cape Gelidonya and Uluburun, indicate that eastern Mediterranean merchants of Cypriot or Syro-Canaanite origin, transported large quantities of oxhide ingots from the Levant towards the west. It remains possible that similar itinerant merchants conducted ventures bringing eastern goods to Sardinia while exploring the western Mediterranean. Trade in eastern goods may have stimulated the advancement that occurred in Nuragic culture in the LBA, resulting in the emergence of an elite social stratum in the Nuragic society. Archaeological evidence, such as elitist burials and increasingly complex architecture, supports the idea of cultural change due to internal competition. This „peer-polity‟ effect may have been incited because of limited accessibility to the exotic eastern goods and the „ownership‟ to the rights of this exchange.

Considering the impact of transaction costs on trade volumes and prices in Europe, in our thesis, we carried out an overview of the costs of crossing borders and an assessment of the degree of fragmentation of the product market in this world area. Throughout the analysis, we paid attention to the country and/ or industry dimension and at how country- and sector-specific patterns affect the European product market integration process. A special attention is also devoted to the model specifications and estimation techniques. Having discussed extensively the foundations of the gravity equation and the properties of the gravity model with the aim of empirical works in the first chapter of our dissertation, chapter two provides a first assessment of the extent of the integration in Europe by measuring the trade intensity via an augmented gravity equation. The study measures the impact of regional trade agreements (RTAs) on Members’ trade in the European zone and highlights that despite the ongoing enlargement process of its free trade area, the European zone displays rather weak RTAs impacts - in comparison with what one could expect -. The chapter also highlights a number of caveats and difficulties when one wants to accurately measure the extent of trade creation brought about the RTAs in Europe. In particular, the existence of zero observations (non observed commodity flows) between country pairs might have important drawbacks in the estimations. Since disaggregated trade data can be very insightful, chapter three implements such an analysis. Using a gravity-like equation as well, it provides a border effect estimations carried out in a multi-country and multi-sector context. Our findings reveal that remaining technical barriers to trade, market structure and degree of product differentiation play an important role in the explanation of border effects. Furthermore, our results succeed to derive a strongly negative impact of nominal exchange rate volatility on trade, whereas traditional gravity specifications fail to identify this clearly – when regional dummies are introduced-. Hence, chapter two and three provide an overview, via the trade channel, of the degree of integration of the product market in Europe: While European agreements (EAs) in terms of trade are effective, bilateral trade relationships face steady impediments. As expected, intra-EAs trade increases and exports from Member States to non Member States decline. The trade obstacles have many sources. In particular, volatility of the nominal exchange rate is found to have trade-reducing effects. Our results also underscore the interest of using sector disaggregated date since we find that the degree of product differentiation and the market structure enter in the explanation of border effects. Moreover, the various approaches to harmonize the remaining technical barriers to trade on sector desegregation basis were found to act in reducing on the European Union border effect. As for chapter four, it re-visits the issue of price convergence within the EMU. Specifically, we test whether the Law of One Price (LOOP) can be validated over the period 1984-2004. Our results fail to support the LOOP for a large majority of sectors and countries under examination. Furthermore, our findings reveal half-lives of deviation from the LOOP suggesting a price adjustment which is globally less slow that commonly estimated in the literature. Indeed, the EMU is anticipated to affect the behaviour of trading firms that should result in a faster cross-border transmission of price movements across Member States. When attempting to explain the factors at work in the LOOP failure, we highlight that beside the European convergence process, the arbitrage channel explain a non negligible part of the country mean reversion in terms of relative prices. Nevertheless, mixed evidence is found for the impact of cross- country and cross-sector variables.

The purpose of this thesis is to analyze the influence of knowledge on the export performance of firms in different regions. More specifically, this study focuses on the impact of knowledge on the structure of regional export flows, in terms of horizontal and vertical product differentiation, as well as the geographical distribution of export flows. The thesis consists of four separate papers, which contribute to the overall analysis of knowledge, product differentiation and international trade in different ways. The second chapter presents a study of the effects of regional accessibility to R&D on the diversity of export flows with regard to goods, firms and destination markets. Chapter 3 provides an empirical analysis of vertical product differentiation, i.e. differentiation in terms of product quality, and examines the impact of educated labor and R&D on regional comparative advantages in goods of relatively high product quality. Chapter 4 contains a study of how the regional endowment of highly educated workers affects the structure of export flows, i.e. how the endowment of educated workers impacts on the number of product varieties exported, the average price per variety and the average quantity shipped out. The final chapter presents a micro-level analysis of firms’ propensity to participate in international markets and their propensity to expand export activities by introducing new export products or establishing export links with new destination countries. In summary, the empirical results of this thesis convey the message that regional accessibility to knowledge, embodied in highly educated labor and/or developed through R&D activities, plays a fundamental role in shaping the content and structure of regional export flows. More specifically, the present empirical observations suggest that the regional endowment of knowledge stimulates the size of the export base in terms of exporting firms and number of product varieties. The recurring significance of the accessibility variables in explaining spatial export patterns show that the knowledge endowment of a region must be defined in such ways that it captures sources of potential knowledge spillovers from inside as well as outside its own regional boundaries. This outcome shows that regional variations in knowledge endowments originate both in the actual spatial distribution of a nation’s knowledge labor across regions, and in regional differences in the geographical accessibility to internal and external knowledge labor.

This thesis investigates the determinants of Taiwan’s import changes and the underlying factors of the decreasing Swedish export to Taiwan between 1994 and 2005. The empirical study includes 36 countries from both the Pacific Rim and OECD. Based on a modified gravity model of trade, the regression model aims to examine how GDP growth in the exporting country, exchange rate changes, common language, and membership in APEC affect Taiwan’s import volume. The result shows estimates with expected signs, with 49.8 percent of the vari-ance in Taiwan’s changed import volume explained by the exogenous variables. Exchange rate change and language are statistically significant. Data on commodity groups of importance for Sweden and Taiwan are also ex-amined, and they show that Taiwan has changed its import demand and has started to import goods other than those Sweden in previous years strongly exported to Taiwan. Taiwan’s regional trading partners have also gained export shares at the expense of Swedish exports. The results are in line with theory and it will be hard for Sweden in the future to compete with the increasing regional trade of East Asia where common lan-guage and culture are of big importance.

Although it is accepted that Phoenician colonization occurred on Sardinia by the 9th century B.C., it is possible that contact between Sardinia‟s indigenous population and the Levantine region occurred in the Late Bronze Age (LBA). Eastern LBA goods found on the island are copper oxhide ingots and Aegean pottery. Previously, it has been suggested that Mycenaeans were responsible for bringing the eastern goods to Sardinia, but the presence of Aegean pottery shards does not confirm the presence of Mycenaean tradesmen. Also, scholars of LBA trade have explained the paucity of evidence for a Mycenaean merchant fleet. Interpretations of two LBA shipwrecks, Cape Gelidonya and Uluburun, indicate that eastern Mediterranean merchants of Cypriot or Syro-Canaanite origin, transported large quantities of oxhide ingots from the Levant towards the west. It remains possible that similar itinerant merchants conducted ventures bringing eastern goods to Sardinia while exploring the western Mediterranean. Trade in eastern goods may have stimulated the advancement that occurred in Nuragic culture in the LBA, resulting in the emergence of an elite social stratum in the Nuragic society. Archaeological evidence, such as elitist burials and increasingly complex architecture, supports the idea of cultural change due to internal competition. This „peer-polity‟ effect may have been incited because of limited accessibility to the exotic eastern goods and the „ownership‟ to the rights of this exchange.

In this thesis, historical institutional analysis of neo-institutionalism will be adopted as the research approach. The analysis combining the international institutional background and domestic institutional development in China and Hong Kong indicates the structural dynamics and strategic goals why China establishes CEPA with Hong Kong. Besides, I focus on the provisions of CEPA and summarize the difficulties of further development and perspectives. I wish this thesis could be studied as reference for scholars and experts in the field of Mainland China studies.

<p>This thesis investigates the determinants of Taiwan’s import changes and the underlying factors of the decreasing Swedish export to Taiwan between 1994 and 2005.</p><p>The empirical study includes 36 countries from both the Pacific Rim and OECD. Based on a modified gravity model of trade, the regression model aims to examine how GDP growth in the exporting country, exchange rate changes, common language, and membership in APEC affect Taiwan’s import volume. The result shows estimates with expected signs, with 49.8 percent of the vari-ance in Taiwan’s changed import volume explained by the exogenous variables. Exchange rate change and language are statistically significant.</p><p>Data on commodity groups of importance for Sweden and Taiwan are also ex-amined, and they show that Taiwan has changed its import demand and has started to import goods other than those Sweden in previous years strongly exported to Taiwan. Taiwan’s regional trading partners have also gained export shares at the expense of Swedish exports.</p><p>The results are in line with theory and it will be hard for Sweden in the future to compete with the increasing regional trade of East Asia where common lan-guage and culture are of big importance.</p>

This thesis examines the regulation of regionalism by the WTO and the formation and operation of regional trade agreements by developing countries. In particular, this work focuses on regional integration in Eastern and Southern Africa. The aim of the thesis is to assess the effectiveness of the relevant legal regimes and determine ways in which they can be made more effective, both in terms of their impact on state conduct and in terms of their impact on the economic welfare of the states concerned. The thesis argues that, with regard to the WTO legal regime, the exemption from the application of Article XXIV, GATT 1994 given to developing countries by the Enabling Clause has contributed to the lack of effectiveness of the WTO regime. For developing countries, on the other hand, the Enabling Clause has deprived them of the legal discipline required to establish effective free trade areas and customs unions. This latter argument is examined through a case study of the Common Market for Eastern and Southern Africa (COMESA). The thesis contends that for COMESA countries to engage in meaningful trade liberalisation, and to participate fully in the WTO, acceptance of greater legal discipline is critical. Such legal discipline can be obtained through compliance with Article XXIV.