Effects Of Economic Integration Research Articles

Effect of economic integration and trade facilitation on Intra-manufacturing export among ECOWAS member states

Institutional trade tariffs and non-tariff barriers are major constraints to exporters and importers. It affects many developing countries' trade flows and intra-trade performance, including ECOWAS member states. From the classical economic background, the economic problems of international macroeconomics can be examined from the position of trade costs. It further states that low trade facilitation policies such as high tariffs and non-tariff barriers alone can account for a 10% loss in a national income. From these backgrounds, the study assesses the interrelation of economic integration and trade facilitation in ECOWAS and how the member states have performed in intra-manufacturing export. Using the general method of moments (GMM) with instrumental variable (IV) estimation on a dynamic model with panel data from 15 members to analyse how regional economic integration and trade facilitation relationship promote intra-regional manufacturing exports. The findings reveal that trade facilitation in ECOWAS member states is below the world average. Due to high bureaucratic processes, thus, are high costs of exporting/importing. Again, the econometric analyses reveal economic integration significantly promotes trade facilitation in member states and can influence intra-manufacturing exports in ECOWAS. At the same time, manufacturing production has a direct and significant role in manufacturing exports. Some policy recommendations that would help facilitate trade and improve manufacturing production and intra exports in the ECOWAS sub-region were made.

ВПЛИВ ЄВРОІНТЕГРАЦІЙНИХ ПРОЦЕСІВ НА ПОСИЛЕННЯ КОНКУРЕНТОСПРОМОЖНОСТІ БАНКІВСЬКОГО СЕКТОРА

The study considers the essence and effects of economic integration on the Euro zone banking sector. The study explains that the intensification of economic integration of European countries provides a competitive environment for banks. The results found that the integration at the macro level increases the international competitiveness of the banking sector by creating a more transparent single secure market and increasing its capacity through the application of common rules and administrative standards for banking supervision and resolution, and on the meso- and micro levels increases the international competitiveness of banking institutions by increasing efficiency and profitability by increasing the volume of cross-border banking activities within the Euro zone. The conclusions suggest the main instruments of ECB’s monetary policy have a positive impact on improving the competitiveness of the banking sector by removing barriers to cross-border competition. Such instruments helped to create a large and transparent capital market, increase banking sector competitiveness by intensifying competition and efficiency of banks.

Bilateral trade agreements and trade finance: evidence from Turkey

PurposeThis study investigates the impact of trade integration on payment choice in international transactions using data from Turkey, an emerging economy that signed many trade agreements in the last two decades.Design/methodology/approachThe authors use industry-level trade finance data from Turkey, which reports payment methods in exports at two-digit ISIC level for 180 export destinations. The authors performed linear as well as maximum likelihood techniques to test our hypothesis.FindingsThe authors show that the removal of trade barriers by bilateral free trade agreements leads to more exporter-financed transactions. This implies that lowering trade barriers contributes to reducing risk, which leads to more trade finance by exporters.Originality/valueTrade finance is the lifeblood of global trade. Although the previous literature have analyzed the institutional and financial factors affecting exporters' decision to extend trade credit, the effect of economic integration has been overlooked. In this regard, this study represents the first attempt to analyze the impact of trade integration on trade finance.

Effect of economic integration on sectorial value added in sub–saharan Africa: Does financial development matter?

ABSTRACT The need for higher sectorial output for enhanced structural transformation has long been acknowledged in the literature, with economic integration touted as one of the ways of spurring sectorial value added. However, recent studies have been less informative in examining how integration influences sectorial output, given the narrow focus of trade and financial integration measures. More tellingly, whether countries domestic financial development mediates the impact of integration on sectorial value added is yet to be explored. This study, therefore, re-engages the literature by investigating the integration–sectorial output linkage using comprehensive measures of integration and financial development. By employing data from 28 sub–Saharan African countries from 1985 to 2015, we find that higher economic integration spurs sectorial value added with robust impact in the industrial sector. This effect holds albeit disproportionately when economic integration is disaggregated into its various forms with the effect of trade integration consistently higher relative to financial integration. Further evidence shows that improved financial development significantly increases the output–enhancing effect in the industrial sector with a weak magnifying role in the agricultural and service sectors.

Effects of economic integration of the Eurasian economic Union

The analysis of various approaches to assessing of economic integration effects of countries in international practice is introduced in the paper. The analysis of the main macroeconomic indicators of the member countries of the Eurasian Economic Union (EEU) is presented for defining the possibility of their using in the calculations of qualitative and quantitative effects of economic integration in the region. An assessment of economic integration effects of the EEU member countries is given, and conclusions are made on the future prospects of the Eurasian Economic Union.

경제통합이 지식재산권과 연구개발투자에 미치는 영향의 분석

경제통합이 지식재산권과 연구개발투자에 미치는 영향의 분석

How crucial are preferences for non-tradable goods and cross-country sectoral TFP gap for integration?

This paper deals with the effects of economic integration in a 2x 2x 2 model of overlapping generations. We distinguish between a non-tradable and a tradable sector which use human and physical capital. We show that the preference for non-tradable consumption in total consumption expenditure and sectoral productivities are crucial factors to determine which country does benefit from integration in terms of economic growth. Short-run and long-run effects of integration may differ, especially when countries are heterogeneous and when there exist high cross border externalities in education. Moreover, an impatient country may lose to integration when it has a comparative advantage in the tradable sector and/or when the preference for non-tradable goods is high.

Do Unit Labour Costs Matter? A Decomposition Exercise on European Data

From the introduction of the euro up to the 2008 global financial crisis, macroeconomic imbalances widened among Member States. This divergence took the form of strong differences in the dynamics of unit labour costs. This paper asks why this happened. Is it the result of distortionary public spending, or the consequence of economic integration? To answer this question, this paper builds a theoretical framework that provides a decomposition of the growth in unit labour costs into various effects of economic integration and policy intervention. Using a novel dataset, it then measures the contribution of each effect in 12 countries of the euro area from 1995 to 2015. Results show that the process of economic integration was an important driver of increasing unit labour costs in peripheral economies before the global financial crisis.

Cultural Heritage in European Union Law and Policies

The purpose of this article is to explore how the European Union (EU) has been confronted with cultural heritage. What powers have been attributed to the European institutions in the field of cultural heritage and how have they been exercised? The article discusses the EU’s competences and available means of action with respect to cultural heritage, and scrutinizes the ways they have been used. The analysis examines the cultural heritage provisions of the EU constitutional texts and the definitional complexities that surround them, it presents early activity in the field of cultural heritage, before the adoption of the Treaty of Maastricht which provided the EU with a formal cultural competence, and it disentangles the cultural heritage policy practice of the European institutions in a post-Maastricht context, looking first at the EU cultural policy proper and secondly, at a broader range of EU policies with a cultural heritage dimension. The article verifies consistency in the development of EU cultural heritage action and expands on the instrumental logic that drives it forward and on the effects of economic integration on the measures adopted.

Law and Political Economy

‘Law and Political Economy’ surveys recent approaches to the study of phenomena at the intersection of law, politics and the economy. These take an interdisciplinary perspective, viewing markets as fields of social power that are not spontaneous but created and reproduced in the meeting of legal norms, political action and economic activity. Through regulating economic relationships, the politico-legal order constitutes and reconstitutes the power relations that make up society. This, in turn, is driven by the formation of class, sectoral and geopolitical interests, as well as ideological convictions, which harness political and legal authority. We present these inter-related processes through exploring contemporary debates on inequality, inter-personal market relations, the relation between the state and market, and the effects of economic integration and globalisation on democracy and political self- determination.

경제통합과 FTA가 항공화물 교역에 미치는 영향에 관한 연구

경제통합과 FTA가 항공화물 교역에 미치는 영향에 관한 연구

The Effects of Economic Integration on Croatian Merchandise Trade: A Gravity Model Study

The paper shows that Croatia trades more with higher income and closer countries, which is in line with the standard gravity model assumption, and that a strong bias exists towards trade with countries of the former Yugoslavia. In addition, Croatian accession to the European Union proved to affect trade positively. On the other hand, free trade agreements signed with non-EU countries do not have a statistically significant and positive effect on Croatian trade. Although the positive impact of Croatia’s membership in Central European Free Trade Agreement (CEFTA) did not prove to be robust, this could be explained by its strong overlap with the group of countries from former Yugoslavia. Additionally, it was found that the crisis affected the determinants of Croatian exports and imports in different ways and that some disparities exist between trade in goods and trade in goods and services.

How (European) economic integration affects domestic electoral politics? A review of the literature

Studies scrutinizing the impact of economic integration on electoral politics, although flourishing, are still relatively scarce. This is surprising insofar as the effects of economic globalization and regional economic integration on domestic politics are potentially massive. This article surveys the most recent contributions and proposes a research agenda to improve, both theoretically and empirically, the existing literature on the effects of economic integration on electoral politics.

MODALITIES FOR ASEAN ECONOMIC INTEGRATION: RETROSPECT AND GOING FORWARD

The stages and economic effects of economic integration in the theoretical literature draws from the empirical integration experiences in Europe and may not be entirely suited to developing country groupings. Economically, ASEAN comprises largely middle and low income countries with priority on national and economic development, emphasizing attracting investment and technological resources and globally competitiveness. ASEAN and the ASEAN Economic Community (AEC) is characterized as a region with wide geographic expanse, diverse economic development levels and pursuing economic integration led by its leadership rather than the private sector. Economic integration has proceeded on two simultaneous fronts — the market-driven proliferation of regional production networks and value chains and the FTA-driven trade and investment facilitation and liberalization. Economic cooperation and integration has been pursued with increasing intensity since the late 1970s. Much has been achieved as seen in the growing density of movements of goods, services, capital and investments and movements of labor and people well as schemes for closer and deeper cooperation. The still-incomplete AEC will be declared on 31 December 2015. But there is still much “work in progress”. The AEC Blueprint 2025 highlights the priorities for the AEC for the next decade, eschewing deeper integration through customs union (CU) or common market but taking due consideration of the challenges from globalization and digitization and the clarion call for inclusive and sustainable development.

Of Iron or Wax? The Effect of Economic Integration on the Reliability of Military Alliances

Of Iron or Wax? The Effect of Economic Integration on the Reliability of Military Alliances

An Investigation of the Cross-Strait Economic Integration and Dependence of Stock Markets

ABSTRACTIn this article, the authors intend to investigate the cross-strait economic integration and the dependence of stock markets between Mainland China and Taiwan. The authors first identify a sequence of important events that have loosened policy restrictions on transportation, commerce, and communication between mainland China and Taiwan. The authors employ various dependence functions to examine the degrees of dependence with symmetric and asymmetric structures to estimate the effects of economic integration on the tail dependence for the major industries. The authors find the market and industrial dependence has significantly increased as well as the market index due to the tendency of the cross-strait economic integration.

(The Effects of Economic Integration between South and North Korea)

Korean Abstract: 본 연구는 축차동태연산가능일반균형(Recursive Dynamic Computable General Equilibrium) 모형을 사용하여 남북한 경제통이 한국과 북한뿐만 아니라 6자회담 당사국인 미국, 중국, 일본, 러시아에 미치는 영향을 추정하였다. 남북한 경제통합을 통해 크게 네 가지 형태의 변화가 일어날 것으로 예상하였고, 그 변화폭을 추정하기 위해 기존 연구를 준용하였다. 첫 번째 변화는 남북한 경제통합에 의해 노동, 자본, 토지, 천연자원과 같은 생산요소의 공급이 변화할 것이라는 점이다. 두 번째 변화는 남북한 경제통합과 함께 TPP와 같은 통상협정의 영향으로 시장이 확대된다는 것이다. 셋째로 국방비 절감과 남한정부에서 북한정부로 이전되는 재정지원으로 인해 남북한의 재정 여건이 개선된다는 점을 고려하였고, 마지막으로 남북한 경제통합에 따른 동북아 긴장 완화 및 해외 신인도 개선으로 6자회담 당사국들에도 긍정적인 영향을 미칠 수 있다고 추정하였다. 남북한 경제통합의 시나리오 구성을 위해 앞서 언급된 네 가지 변화를 바탕으로 남북한 경제통합이 남북한만의 노력으로 이뤄지는 경우(시나리오 Ⅰ)와 6자회담국의 참여도 추가적으로 고려되는 경우(시나리오 Ⅱ)로 구분하였다. 또한 경제통합에 따른 변화의 최소치와 최대치를 추정하고 이를 활용하여 세부 시나리오를 추가적으로 구성하였다. 그런 후 이 시나리오들을 축차동태모형에 대입하여 남북한 경제통합에 따른 경제적 효과를 추정하였다. 추정 결과에 따르면 남북한 경제통합으로 인해 20년 후 한국의 실질 GDP는 약 1.7~3%, 북한의 실질 GDP는 약 4.3~ 110.6%까지 증대되는 것으로 나타났다. 또한 6자 회담국에 대한 추정 결과로는 남북한 경제통합과 TPP의 영향으로 미국과 일본의 GDP가 증가할 수 있고, 중국과 러시아도 긴장완화의 혜택을 일부 누릴 수 있는 것으로 나타났다. 특히 여타 국가들과 비교해서 일본이 남북한 경제통합의 최대 수혜국으로 예상되었다. 본 연구는 다음과 같은 시사점을 제공한다. 첫째, 기존 연구는 남북한 경제통합의 결과를 단편적으로 추정하여 경제통합에 따른 각 경제주체의 행위 변화가 새로운 균형 상태를 이끌어낸다는 점을 간과하였다. 즉 기존 연구는 지나치게 높은 통일 편익의 보고하고 있다. 둘째, 북한의 성장이 일본에 큰 혜택을 준다. 셋째로, 북한의 급격한 성장이 주변국의 경제성장에 부정적인 영향을 미칠 수 있기 때문에 조화로운 통일정책을 추진하는 것이 바람직하다는 것이다.English Abstract: This study estimates the effect of economic integration between South and North Korea for the Six-Party Talk members including the U.S., China, Japan, and Russia by way of Recursive Dynamic Computable General Equilibrium model. This study predicts four types of changes from the integration, and utilizes previous studies to estimate the volume of the changes. First, it predicts the change in production factors such as labor, capital, land, and natural resources from the integration. Second, the unification, along with the TPP, would expand the market size. Third, it considers improved finances from reduction of military expense and subsidies from the South to the North. Last, it expects that South-North integration would lead to relaxation of tensions in Northeast Asia and enhancement of trust at the international level, which would affect the Six-Party Talk members positively. This study considers the following two scenarios: one involving efforts undertaken solely by the South and North, and the other with added effort from the Six-Party Talk members. Additionally this study estimates the minimum and maximum from the four changes and creates detailed scenarios. Those scenarios were applied to the Recurve Dynamic Models, and the economic effects were estimated. According to the estimations, South Korea’s GDP would rise about 1.7~3 percent and North Korea’s GDP would rise about 4.3~110.6 percent solely as a result of the economic integration between the two Koreas. Moreover, the U.S. and Japan’s GDP would rise due to the integration and the TPP, and possibly in some sense China and Russia may experience positive effects as well. In particular, it is predicted that Japan would be the leading beneficiary among the members. This study suggests the following implications. First, previous studies estimate the effects in fragmented fashion and thus overlook the fact that each economic agent who is confronted with the changes may lead the new equilibrium. This may result in overestimation of the benefits from the integration. Second, economic growth in North Korea would bring forth considerable benefits to Japan. Third, we may have to pursue a coordinated unification policy in that abrupt economic growth of the North Korea may actually have negative effects on other countries.

Does International Trade Reduce Political Disputes?

The effect of economic integration and other factors on interstate conflict has been examined with a delimited geographical scope. A logistic regression analysis is adopted with one-year lagged independent variables regressed on dependent variable of interstate conflict. It is revealed that the pacification effect of economic openness and economic dependence on trade of the East African countries—Djibouti, Eritrea, Ethiopia, Kenya, Somalia, Sudan, Tanzania and Uganda—is significant. In addition, it is found that an improvement in the democratic situation of the dyads reduces the likelihood of eruption of interstate conflict in the region. The article has uncovered that higher national capability asymmetry in East African region among the specified countries leads to an increase in the possibility of violence.

International integration with heterogeneous immigration policies

This paper investigates the welfare effects of developed countries with heterogeneous and uncoordinated immigration policies. We build a simple three-country model where two rich countries with different immigration policies receive immigrants from the third developing country. We consider the effects of economic integration in the form of free mobility of native workers and show that under certain conditions, wage gap between two developed countries is crucial whether integration ends in win–win or lose–lose.

Economic Integration, External Forces and Political Cooperation Between South and North Korea in the UNGA

IntroductionDoes economic integration between South and North Korea generate positive spillover effects on their relationship? Or, are geopolitical factors and security issues still powerful enough to dominate Korean politics, limiting the effect of economic integration? The level of economic integration between the two Koreas has deepened over time. The amount of bilateral trade was only about $1.1 million three years after they officially began their trade relationship in 1988. It increased to $400 million in 2000 and then $2 billion in 2012. Currently, South Korea is North Korea's second largest trading partner, accounting for about 38 percent of its total trade in 2007. Considerable research argues that economic integration generates positive spillover effects on economic partners socially and politically.2 Scholars of liberal peace, for instance, claim that bilateral economic interdependence reduces the likelihood of militarized conflict between trading partners.3 Strong economic ties and material gains generated from it may promote economic partners' incentive to maintain or strengthen their relationship and avoid threats that may disrupt their partnership. Frequent interactions can also increase common knowledge, understanding, and interest on various issues. To the extent it occurs, economic partners are likely to narrow their policy preference gaps over various foreign policy issues.4 In this regard, it is reasonable to suspect that increasing economic integration between the two Koreas may have promoted their foreign policy preference similarity, increasing political cooperation in international organizations.Meanwhile, from a realist perspective, military tension and external forces on the peninsula, such as the U.S. and China, are still powerful factors that drive Korean politics. From this perspective, inter-Korean relations and their foreign policies have been shaped and affected by geopolitical issues and regional super powers. Therefore, bilateral economic integration may have a negligible impact on inter- Korean relations.Both claims have solid theoretical grounds. Nevertheless, virtually no empirical studies have tested these claims and show whether economic integration has gen- erated any positive spillover effects on inter-Korean relations. This article examines whether deepening economic integration has promoted cooperation between the two Koreas by analyzing their voting (dis)similarity in the United Nations General Assembly (UNGA) over the time period, 1991-2011. Also, it tests whether their voting decisions are strongly influenced by the positions of the U.S. and China on the issues. Empirical results show no significant evidence that economic integration promotes cooperation between South and North Korea in the UNGA. However, the two Koreas show relatively similar voting patterns over economic issues and Palestinian issues, while they tend not to agree on nuclear, security, and human rights issues. Meanwhile, their vote coincidence is strongly influenced by the United States' and China's positions on votes. These results imply that political rather than economic factors are still significant in explaining non-cooperation on the Korean Peninsula.In the following pages, we first examine the theoretical basis of the relationship between economic integration and states' cooperation. Next, we explore states' voting behavior in the UNGA in general and that of the two Koreas in particular. Research design, the data and variables used in this article, and the empirical results are reported in the next section. Finally, we conclude with a summary of the findings and their implications.Economic Integration and Cooperation Between StatesEconomic integration, which is typically defined as the free flow of goods, capital, and labor across national borders, has deepened in many places in the world. The Korean Peninsula is not an exception from this global trend. Ever since the devastating Korean War in 1950-1953, the two Koreas lacked a formal economic relationship until 1988. …