Power concentration or parity? The conditional influence of power distribution in regional economic integration

Which condition between power concentration and power parity among regional countries is conducive to regional economic integration? The literature has suggested mixed findings as to the influence of power distribution. This study examines conditional effects of power distribution by identifying associated conditions to produce formal regional economic integration. Based on the comprehensive data on plurilateral trade agreements, this study employs both fuzzy set Qualitative Comparative Analysis (fsQCA) and process tracing techniques. The fsQCA reveals multiple jointly sufficient conditions to the outcome. In particular, I focus on two such conditions: (1) the presence of a regional hegemon with surrounding countries of homogeneous polity type and (2) the strong intraregional trade interdependence in conjunction with power parity among countries. These conditions are further supported in within-case analyses. These results indicate the conditional effect of power distribution and the existence of multiple paths toward regional economic integration.