Regionalism vs. bilateralism: an analysis on trade flows in advanced and emerging economies

This chapter analyzes the role of regionalism versus bilateral trade relationships in the context of international trade disruptions caused by the COVID- 19 pandemic. The export and import flows of 11 advanced and 12 emerging economies are ex- amined and compared to identify their primary economic interests, whether linked to regional trade blocs or bilateral partnerships, with or without formal trade agreements (preferential and non- preferential). The findings indicate that advanced economies trade similarly within their blocs and partnerships, regardless of tariff preferences, while emerging economies prioritize half of their trade through non- preferential bilateral partnerships. The trade patterns reveal strong convergence among developed economies and a latent alignment with emerging economies, which also display a uniform trade distribution.