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Types of economic integration (English)

The experience of developed market economies, socialist countries, and developing nations with regional integration schemes is evaluated. Emphasis is on two forms of trade integration: market integration through reductions of barriers to intraregional trade and production-and-development integration through agreements on plurinational industrial programming and investment allocation. The question of the optimal degree of market and of production-and-development integration is also examined, along with the relationship between economic integration and national sovereignty. The success of the various schemes, irrespective of the type of economy, rests on a number of basic conditions, which include the use of prices reflecting resource scarcities, the size of the market of an integrated area, and interference with allocation patterns brought about by the market mechanism. Joint decisions at the expense of national sovereignty of the individual countries also are necessary, and failure to make these decisions is responsible for the lack of progress towards economic union in the EEC. Numerous references.

Details

  • Author

    BALASSA, B.

  • Document Date

    1974/09/30

  • Document Type

    Staff Working Paper

  • Report Number

    SWP185

  • Volume No

    1

  • Total Volume(s)

    1

  • Disclosure Date

    2010/07/12

  • Disclosure Status

    Disclosed

  • Doc Name

    Types of economic integration

  • Keywords

    central american common market;european free trade association;international division of labor;international development research center;evidence of trade diversion;economies of scale;machinery and equipment;market economy;volume of trade;elimination of barrier;nonmember countries;integration scheme;reduction in tariffs;common agricultural policy;barriers to trade;difference in income;gross national product;Balance of Trade;multilateral trade liberalization;common external tariff;net material product;trade creation;partner country;foreign trade;gains and losses;abolition of tariffs;reliance on foreign;value of trade;charge for capital;benefits of integration;Petrochemicals and Fertilizers;agreement on trade;system of price;world market price;reduction of barriers;bilateral trade agreement;trade and conflict;foreign exchange value;expansion of trade;high growth rate;centrally planned economy;removal of barrier;infant industry argument;manufactured goods;economic integration;national sovereignty;economic union;market integration;trade integration;Economic Policy;Socialist countries;quantitative restriction;tariff reduction;common tariff;national economy;raw material;social system;national market;european community;resource scarcity;bilateral relationship;national interest;increased imports;increased competition;participating country;national boundary;political decision;monopoly position;agricultural product;nation state;convertible currency;trade balance;industrial programming;foreign supplier;domestic consumer;national state;industrial material;Industrial Policies;finished goods;trading partner;price relationship;import share;intermediate product;market size;relative price;intergovernmental negotiation;vertical integration;firm level;domestic product;commodity value;export performance;exchange rate;postwar period;export patterns;efficiency coefficient;debtor country;imported inputs;bilateral negotiation;restrictive effects;considerable dispersion;resource cost;considerable difference;Exchange Rates;external equilibrium;clearing agreement;allocation pattern;import activity;weighted average;machine tool;commodity group;domestic labor;electronics industry;market mechanism;preferential agreement;special interest;transaction account;population figures;electricity grid;freight car;Independent States;market outlet;Agricultural Trade;transfer tax;import increase;trade relationship;price signal;domestic price;constant price;duty drawback;increased investment;postwar reconstruction;intra-eec trade;food import;increased trade;domestic production;intraregional trade;investment allocation;factor movement;colonial times;classical economic;Socialist economies;removing barriers;integration process;common policies;state intervention;heavy equipment;price index;public purchase;political interest;political will;european integration;political process;political factor;classification scheme;domestic sources;water resource;technological development;governmental policy;small island;high transportation;production pattern;freeing trade;long-term agreement;world economy;Industrial Policy;manufacturing sector;private industry;political union;open economy;monetary integration;economic reform;regional market;political integration;information flow;production process;engineering industry;exclusive right;plant produce;free access;international cooperation;central authority;

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Citation

BALASSA, B.

Types of economic integration (English). Staff working paper ; no. SWP 185 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/832621467980499934/Types-of-economic-integration