Abstract
1The article presents the results of a research aimed at the explanation and evaluation of the factors of economic growth of regional integrated associations and the national economies of their member countries. The authors determine that these factors are foreign trade, mutual balance of trade and domestic demand. The novelty of the methodology used by the authors is that, unlike the traditional method where the assessment of the growth factors of integrative associations and their member states is based on the comparison of two components: external and domestic demand, this method breaks external demand into two components: first part is net exports (the difference between export and import, which is the component of aggregate demand) of goods within the integrative association, i.e., net exports of mutual trade; the second is net exports of foreign trade beyond the integrative association. The target of the research included seven most famous regional integrative associations that emerged at different times and are currently undergoing different stages in their development: the European Union, the North American Free Trade Area, the Association of Southeast Asian Nations, the South American Common Market, Asia-Pacific Economic Cooperation, as well as members of Eurasian integration — the Customs Union and the Common Economic Space, which on January 1, 2015 transformed into the Eurasian Economic Union. The authors come to the conclusion that integration develops successfully only in the context of the growth of the national economies of the member countries. The economies undergoing a crisis have to invest more efforts into dealing with domestic problems than in solving the issues related to integration.
Highlights
In today’s world, the relationship between globalization and regional integration becomes one of the topical issues
Regional integration is a complex phenomenon, which largely depends on the characteristics of the member states; there are no universal rules that determine the policy, so the policy is based on international agreements
It is necessary to develop a balanced coherent economic policy for the Eurasian Economic Union, which has to be adequate to the modern geopolitical challenges and threats of globalization, as otherwise the development of the national economies of the integrated entity will not be efficient enough, and the member states will not have any opportunities to solve their problems
Summary
In today’s world, the relationship between globalization and regional integration becomes one of the topical issues. In Western Europe, North and South America, Southeast Asia, the former Soviet Union and Africa, there are large regional associations that cooperate due to their common economic and geopolitical interests They were established for different reasons and with different goals, but in the context of the world economy’s globalization they are all aimed at the protection of the national interests of the group of nation states that they represent. There have been a number of serious problems in the activity of the EU in recent years, and not all EU initiatives have been effective Suffice it to mention the failure of the Lisbon strategy of the EU development for 2000–2010, which, among other purposes, “provided for technological breakthrough of the EU countries on the world stage, the desire to turn it into the most competitive and dynamic “knowledge-based economic area in the world””. The establishment of the Common Economic Space proceeded rapidly after the global financial and
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
