Trade Network Analyses

Abstract

The network analyses reveal that extra-regional trade is indeed much more important for ASEAN, MERCOSUR, and SADC than intraregional trade, whereas intraregional trade clearly dominates the European network. Extra-regional trade partners have central positions in the trade networks of developing regions, and extra-regional trade flows dominate the picture. Thus, one may expect that the extra-regional interests of the regional member states are more important than the intraregional ones, and that they motivate and constrain regional integration in the developing world. Besides, the trade networks also demonstrate that two of the three developing regions are distinguished by large asymmetries and are dominated by one regional power. Brazil is clearly the dominant member state of MERCOSUR, whereas South Africa dominates SADC. In contrast, the economic weights of ASEAN's member states differ, but none of them is so powerful in economic terms that it dominates the whole region. Brazil and South Africa are both important trade partners for their smaller neighbours, but they themselves trade predominantly with extra-regional partners like the EU and the USA. This asymmetric structure bears the risk of Rambo constellations, wherein the regional powers defect from regional integration in order to protect privileges in their extra-regional economic relations.