Abstract
The main aim of this paper is to discuss standard explanations of the causes respective to each wave of economic regionalism, and to introduce an alternative approach suggesting the existence of a common mechanism driving all three waves of regionalism. At the centre of the argument is the general logic based on the balance mechanism embracing standard theoretical explanations.
For acquiring empirical evidence, causes of all three waves of regionalism are analysed as well as on one particular case of the third wave of regionalism - ASEAN-China FTA. Central motivation is the existence of plethora of factors identified as a root causes leading to the preference of the regional trade strategies at particular time.
However, this study argues that every instance of economic turmoil leads to protectionist tendencies in the form of economic regionalism followed by the multilateral trade liberalisation mitigating the negative effects of regionalism.