ABSTRACT
The design of current economic organizations (REOs) is remarkably diverse. Some REOs address numerous economic issues, while others have only limited mandates. Some REOs have an independent bureaucracy and a legalized dispute settlement mechanism, while others do not. What determines this institutional variation? Extant research alludes to the possibility that the member-states’ economic growth, or lack thereof, affects the prospects of cooperation through regional institutions. The nature of these relationships is contested, however. Systematic empirical evidence on the link between economic growth and REOs’ functions and structure are nevertheless scant. Using an original data set that contains detailed information on the economic activities and institutional structure of numerous REOs over three decades, this chapter presents one of the first systematic analyses of these relationships. Our findings indicate that economic growth is conducive to greater REO institutionalization.
