(Re)theorising European Integration under Globalisation:A Political Economy Approach

In the last two decades, the European Union has become wider and deeper. In addition, the number of regional integration arrangements has increased dramatically since early 1990s. Against these developments, the focus of regional and European integration studies has shifted away from the motives for and drivers of the integration process towards policy analysis or the comparative politics or regional blocs. This article attempts to bring the regional integration theory back in by proposing a political economy model that explains the dynamics of European integration, the reasons as to why governments agree to delegate authority to regional (EU) institutions, and the relationship between globalisation and integration

A New Multi-Dimensional Framework for Analyzing Regional Integration: Regional Integration Evaluation (RIE) Methodology

Theories of regional integration typically analyze the regional integration process from the perspective of a single discipline, usually economics. However, such one-dimensional analytical frameworks cannot fully capture the richness and complexity of the inherently multi-dimensional regional integration process. To address the problem, we propose the regional integration evaluation (RIE) methodology which is based on four dimensions of development – economic, political, social and technological. The central idea behind the RIE methodology is that regional development promotes regional integration. Our RIE methodology differs from the existing literature in that it is based on a more comprehensive definition of development than just economic development. Our definition of a region's development incorporates the development levels of all regional countries as well as differences in development levels among regional countries. We apply the RIE methodology to assess the regional development and hence integration prospects of NAFTA, ASEAN, MERCOSUR and EU.Economic integration; economic modeling; NAFTA; ASEAN; MERCOSUR; EU

Integration: An Empirical Assessment of Russia

In the process of implementing market reforms, many post-socialist countries have struggled to preserve economic and political integration. Using a statistical model of commodity trade, we quantify the evolution of economic integration observed among regions within Russia during 1995-1999, and then explore potential determinants of the patterns of integration we observe. Our measure of integration exhibits rich regional variation that, when aggregated to the national level, fluctuates substantially over time. In seeking to account for this behavior, we draw in part on theoretical models that emphasize the potential role of openness to international trade, regional disparities in income, and inflation volatility in threatening economic and political integration. Controlling for a host of additional regional- and national-level variables, we find a strong negative correspondence between openness to international trade and internal economic integration within Russia. We also find negative links but weaker links between integration and regional-income disparities and inflation volatility.http://deepblue.lib.umich.edu/bitstream/2027.42/39873/3/wp488.pd

Regional integration as diplomacy

Regional integration agreements (RIAs) are examples of second best and have an ambiguous impact on welfare, contend the authors. They build a model in which RIAs unambiguously raise welfare by correcting for externalities. It assumes that trade between neighboring countries increases trust between them and reduces the likelihood of conflict. The optimum intervention in that case is a subsidy on imports from the neighbor. The authors show that an equivalent solution is for the neighboring countries to tax imports fromthe rest of the world -that is, to form an RIA- together with imposing some domestic taxes. In fact, security threats have moved neighboring countries to form RIAs. Examples include the creation of the European Coal and Steel Community (1951) and the European Economic Community (1957) to reduce the threat of war in Europe, as well as various RIAs among developing countries. The authors show, among other things, that: 1) the optimum tariffs on imports from the rest of the world are likely to decline over time; 2) deep integration implies lower optimum external tariffs if it is exogenous; 3) but if deep integration is endogenous, it implies higher optimum external tariffs before it occurs and lower ones thereafter; and 4) enlargement of a bloc (in terms of symmetric countries) has an ambiguous impact on external tariffs but improves welfare, and some form of domino effect exists in the sense that enlargement increases the incentive for nonmembers to seek accession. Although externalities associated with security matters imply that an RIA may maximize welfare, this model suggests that the RIA is a transitory arrangement in the sense that optimum trade preferences are highest at the time the RIA is formed (when security is low) and tend to decline over time. In other words, the RIA's external trade policy becomes increasingly open over time (as well as following deep integration).Rules of Origin,Environmental Economics&Policies,Economic Theory&Research,Payment Systems&Infrastructure,Trade Policy,Trade Policy,Environmental Economics&Policies,Economic Theory&Research,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Trade and Regional Integration

"System, power, and European monetary integration"

[From the Introduction]. Theories of international relations and comparative politics characterize the movement within Western Europe toward monetary integration primarily in regional terms. The global context within which European monetary integration is taking place is viewed in this literature as having little influence or influence which is only episodic, momentary, or ancillary to other, more primary forces. Regional political integration, regional economic interdependence, sectoral interests within European countries, and strategies of national executives and central bankers are instead given primary emphasis. This article argues, by contrast, that the international system has provided strong incentives for and greatly affected European monetary integration. Changes in and unpredictability of international monetary policies of the United States, in particular, have pushed European governments toward regional monetary integration at several critical historical junctures. Indeed, all of the major successes in monetary integration were closely, and causally, associated with transatlantic monetary conflict and the decline or weakness of the international monetary regime

European integration: what lessons for other regions? The case of Latin America

This paper tests for the hypothesis that institutional integration interacts with economic integration at the regional level. In particular, we ask what lessons can be drawn from the European experience with regional integration for Latin America. Several indicators of institutional and economic integration for both the EU and Latin America are presented. We find that Latin America is currently less economically integrated not only than the European Union today, but in some cases even than the EU at the beginning of its regional integration process. A cluster analysis illustrates that the link between institutional and economic integration has worked both ways throughout the whole EU experience. The more institutional integration went beyond the creation of a customs union and moved towards a common market and an economic and monetary union, the deeper economic integration turned out. Increasing economic integration in turn corroborated and sustained the process of institutional integration. JEL Classification: E42, F15, F33, F41intra-regional exchange rate variability, Regional integration in Europe and Latin America

Assessing regional integration: The progress of ASEAN regional grouping

The Association of Southeast Asian Nations (ASEAN) is now entering a new phase in its integration process. Beyond AFTA, it is now preparing a roadmap towards deeper economic integration, namely the creation of an ASEAN Economic Community by 2015. Economic integration is to be encouraged if it can contribute positively towards the achievement of this goal and the overall developmental goals of the ASEAN countries. In view of the importance of enhancing economic integration in the era of globalisation, this paper evaluates the progress of ASEAN regional integration for the past decade to see to what extent ASEAN economic integration efforts have been successful. In this paper, the progress and developments of ASEAN countries are evaluated using performance indicators of regional integration based on ASEAN economic integration index. The scope of analysis of economic integration focuses on the three most important sectors of the thrusts of ASEAN economic cooperation, that is, trade; Investment; and human resources and labour mobility

India’s Role in South Asia Trade and Investment Integration

Recent developments in South Asian countries, especially the re-emergence of democratic governments, new growth momentum despite the global economic downturn and greater openness, warrant a fresh look at the region’s prospects for economic integration. On the basis of a thorough review of the literature on potential and prospects of regional integration in South Asia and after examining the trends in intra-SAARC trade and investment flows, this paper finds that the progress in regional cooperation has been far short of potential. The paper, therefore, focuses on the ‘real impediments’ to regional integration and on that basis makes a set of policy oriented recommendations for furthering deeper regional integration in South Asia. It also emphasizes that given its dominant size, human resources, and aspirations for a global role, India will have to take on a disproportionately larger responsibility for promoting regional cooperation in South Asia. However, regional integration will not be achieved by India’s unilateral actions alone. Neighboring governments will have to respond positively to Indian initiatives for successful regional integration in South Asia.South Asia; economic integration; regional trade; foreign direct investment