Economic integration and diffusion of regulatory standards: Evidence from trade networks

Sergio H. Rocha & Prakrati Thakur

Canadian Journal of Economics / Revue Canadienne D'Economique2026https://doi.org/10.1111/caje.70049article
AJG 3ABDC A
Weight
0.50

Abstract

We document network effects in the diffusion of regulatory standards through international trade. Using both an instrumental variables approach, based on the time‐varying geographic component of trade, and a recentering approach, exploiting the timing of regulation adoption, we provide robust evidence that countries tend to domestically adopt the regulations of their key trade partners, especially when imposed by their export destinations. Leveraging the high dimensionality of our data, we show that the diffusion process is stronger for regulations and products with observable compliance. Our findings imply that economic integration can strengthen regulatory standards, aiding international policy coordination.

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https://doi.org/https://doi.org/10.1111/caje.70049

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@article{sergio2026,
  title        = {{Economic integration and diffusion of regulatory standards: Evidence from trade networks}},
  author       = {Sergio H. Rocha & Prakrati Thakur},
  journal      = {Canadian Journal of Economics / Revue Canadienne D'Economique},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/caje.70049},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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