Effects of Institutions Sample Clauses

Effects of Institutions. As the previous section demonstrates, there is evidence of political, economic, and cultural regionalism in Eurasia. Yet this does not explain the causes of Eurasian regionalism. To get at this question, a number of scholars have investigated to what degree the formal institutions cause the observed levels of regionalism. Most find they are not nearly as effective as their members hoped. In the area of migration and FDI proceeded with very little support of the formal regional organizations – in fact, it flourished where intergovernmental cooperation failed or even when governments attempted to restrict emigration or inflow of FDI. This is not to say that political factor had no impact on multinationals and migrants. On the contrary, under Xxxxx Russia seems to actively use the economic expansion of its multinationals as a tool of political dominance (Tsygankov 2006), along with the more traditional tools of energy dependence (Xxxxxx 2007). But in many cases investments in Eurasia are done by Russian companies with weak political connections or even by small and medium-sized enterprises. Thus, Eurasia seems to resemble East Asia in the predominance of market-driven integration as opposed to intergovernmental cooperation. However, creation of the CU did facilitate FDI flow between Russia and Kazakhstan (and even resulted in strengthening jurisdictional competition of these two countries, see Xxxxxxxx 2011). Furthermore, Eurasia represents an interesting case when FDI and migration outperform trade in terms of regionalization – while the standard theory of economic integration assumes the opposite. Xxxxxx and Xxxxxxxxx (2012c) link it to the effect of Soviet legacies. As discussed in the conclusion, there are major problems with the data, so these findings should be taken as preliminary. Numerous scholars have tried to explain why Eurasia is not integrating more fully, both in terms of implementing agreements and seeing improved economic performance. Interestingly, most of the problems identified in the Eurasia literature have also been found in studies of the developing world (Xxxxxxx 2009; Xxxxxxxxxx 2011a, 2011b; Wirminghaus 2012). Several factors appear in the majority of studies: • Integration creates re-distributional conflicts between members. In numerous cases, policies of some Eurasian countries, notably Russia, created negative externalities for their neighbors, starting with the collapse of the Xxxxx Zone (Xxxxxxxxx 1997; Xxxxxxxx 1994). For examp...