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Leveling the Playing FieldTransnational Regulatory Integration and Development$
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Laszlo Bruszt and Gerald A. McDermott

Print publication date: 2014

Print ISBN-13: 9780198703143

Published to Oxford Scholarship Online: September 2014

DOI: 10.1093/acprof:oso/9780198703143.001.0001

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Informal Drivers of Regional Regulatory Integration

Informal Drivers of Regional Regulatory Integration

The Auto Sector in Central Europe and Latin America

Chapter:
(p.183) 8 Informal Drivers of Regional Regulatory Integration
Source:
Leveling the Playing Field
Author(s):

Moises Costa

Wade Jacoby

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198703143.003.0008

We analyze the development of regulatory regionalism in emerging markets using the auto sector in both the influential European Union and the far less powerful MERCOSUR. Our conclusion is that regional integration regimes can, under certain conditions, have effects even outside their formal territorial and sectoral scope. In Central and Eastern Europe in the early 1990s, the auto sector both anticipated and promoted EU membership, culminating in enlargement by 2004 and bringing regulatory integration and substantial industrial upgrading. In Latin America, a series of powerful but unexpected feedback effects from MERCOSUR has affected the auto sector despite the fact that the sector is excluded from the formal regional accord. Thus, the advocates of integration in the auto sector—business in the EU but mostly politicians in the MERCOSUR case—each seem to be winning out in their own way, generating regulative integration and, often, harmonization and industrial upgrading.

Keywords:   regional integration, regulatory integration, harmonization, industrial upgrading, MERCOSUR, European Union, automotive sector, comparative regionalism, supranationalism, intergovernamentalism

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