Institutional foundations for integrating national economies: the problem of stability of supra-national institutions

Abstract

The movement of goods, capital and labour at various levels of foreign trade determine the creation and development of supranational institutions of economic integration. The emerging trends towards weakening and deformation of the role of global supranational institutions of economic integration are paralleled by strengthening of regional integration groups which makes it urgent to study the problems of sustainability of supranational institutions and economic integration in general. The article is devoted to the analysis of the sustainability problems of supranational institutions for the integration of national economies. The aim of the study is to generalize and analyze approaches to the sustainability of supranational institutions through the prism of structural-level analysis. The study proves the existence of phases in the development of supranational institutions, which determines the cyclical nature of economic integration. As a result, the conclusion is made about the presence of a paternalistic (semi-market) type of integration along with a market one; the stability of the created integration links depends on both of these types. The market and semi-market bases for the integration of national economies are described. The paper gives the author's view of determining the causes of deformation and dysfunction of supranational institutions within the market and semi-market basis of economic integration.