Resource-Based Reluctance, Reversed Asymmetry, and Non-Trade Integration Incentives - Theory and Evidence from European Neighbourhood

Abstract

Among ENP countries, Azerbaijan is outstanding because it leans on its resource base and sees the EU at the receiving end of bilateral relations. At the other extreme, Ukraine depends on EU cooperation, especially with respect to trade. We develop a comprehensive theoretical concept for analyzing both types of asymmetries. We do this by considering both rational cost-benefit as well as constructivist norm oriented national strategies. Furthermore, we contrast the both national strategies to bilateral, regional, and multilateral EU strategies for democracy promotion, economic cooperation, justice and home affairs cooperation, and conflict resolution in European neighbourhood. It turns out that EU strategies of Neighbourhood Europeanization have to be increasingly based on non-tangible tools, on packages of regional and multilateral initiatives which balance out asymmetries, and on other than trade issues, such as security, in order to be more effectiveUkraine, Azerbaijan, ENP, Transition Economies, Institutional Change, Governance, Resource Curse

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Research Papers in Economics

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Last time updated on 10/24/2014

This paper was published in Research Papers in Economics.

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