Process Of Regional Economic Integration Research Articles

The optimized development of China's service industry in the “Belt and Road” regional value chain: A social network analysis

AbstractThe optimized development of service industry in the value chain can inject strong impetus into economic growth. The “Belt and Road” initiative provides a new path for China's service industry. This article combines value‐added accounting method and social network analysis method to study the network environment of service trade in the “Belt and Road” region and the individual characteristics of China's service trade. At the same time, the article deeply analyzes the factors that affect the optimized development of China's service industry in the “Belt and Road” regional value chain from the perspective of trade relations and puts forward countermeasures and suggestions accordingly. The study found that the “Belt and Road” regional service trade network has high density and shows a trend of blockization. As a core node in the regional service trade network, China has strong subjective initiative, connecting link, and independence in trade relations. Moreover, the optimization of China's service trade relations can further enhance its position in the “Belt and Road” regional value chain. At the same time, it can also enhance political and cultural identity, enhance China's discourse power, and promote the process of regional economic integration. Therefore, China's service industry can use the “Belt and Road” initiative to innovate the trade relationship model and realize the optimal development.

Political Instability and Insecurity in Africa: Implications for African Union Agenda 2063

The idea of the transformation of the Organization of African Unity (OAU) to the African Union (AU) in 1999, by African Heads of State and governments, was to accelerate the processes of regional economic integration in the continent. Thus, the AU came into being to enable the continent to play a significant role in global economic affairs, while addressing other multifaceted social, economic, and political problems that tend to hinder progress in the continent. However, after more than two decades of its transformation, and despite the adoption of Agenda 2063 which aims to accelerate economic progress in Africa, the continent remains at a crossroads in its struggle to grapple with the challenges of achieving its core objectives. Drawing data largely from secondary sources of information, the paper attempted a critical examination of the political instability and insecurity across many African states, especially as the continent strives towards achieving economic progress through the framework of Agenda 2063, and found out that political instability and insecurity are fundamental challenges standing against the actualization of the Agenda’s objectives. The paper, therefore, concluded that unless these challenges are mitigated, the Agenda 2063 will remain nothing but a document that cannot be actualized because the peace and security required to attend such an enviable feat is seriously in breach in a majority of the states of the Union. The paper recommended the entrenchment of democratic culture and constitutionalism as well as strengthening of existing institutions of governance as the first step towards achieving the desired peace and security that will ensure the economic progress of the continent.

Security and Trade in African Borderlands – An Introduction

The goal of this special issue is to explore the relationships that bind trade and security in African borderlands. Examples from the Horn, North, and West Africa suggest that African countries are in the difficult situation of having to pursue their regional integration efforts without having the resources or the willingness to control their borders. In other words, the process of regional economic integration is rarely accompanied by an effective securitization of borders, despite Western efforts to establish new border regimes. Technological transfers have marginally improved the ability of African states to monitor the transnational circulation of goods and people. Imported technologies have been instrumentalized by political elites and contested by border communities when they threatened local livelihoods. This integration process differs greatly from the model developed in Europe and North America, where a balance has been found between the opening of markets and control of mobility. It is increasingly challenged by violent religious groups who argue that modern nation-states are incompatible with religious law and that their borders are irrelevant to the community of believers.

Stagnansi Perdagangan Intra ASEAN pada Periode MEA 2015: Faktor Domestik dan Interdependensi

In 2007, ASEAN member states decided to accelerate the process of regional economic integration by advancing the implementation of the ASEAN Economic Community (EAC) from 2020 to 2015. Statistics from the ASEAN Secretariat in 2019 showed that intra ASEAN trade in the 2015 AEC period did not increase consistently and tended to stagnate at 20-24 percent. Meanwhile in 2020, it is expected that intra ASEAN trade can grow by up to 30 percent. This article aims to analyze why there is a phenomenon of inconsistency in the increase in intra-ASEAN trade during the 2015 AEC period taking into account domestic politics and economic interdependence of ASEAN countries. The methods used in this writing are qualitative methods that are analyzed descriptively. Data collection techniques are carried out through library studies, namely the acquisition of data from various sources both books, official news, articles, and other relevant documents. This study shows the results that ASEAN economic integration in addition to being influenced by domestic factors, is also influenced by the economic interdependence of ASEAN countries.

The 14th Five-year plan and the development of education in China

Over the past two years, the world economy has been severely affected by the COVID-19 pandemic, the processes of globalization and regional international economic integration have faced new challenges, trade protectionism has intensified, international labor migration and international technology exchange have slowed down. Under such conditions, it is difficult to maintain China's former economic model based on imitation of innovation, cheap and mass labor of average qualification, and orientation towards export of products. China's response to the current trends and problems of economic development is the implementation of the "14th Five-Year Plan" (2021-2025), as well as the longer-term perspective of the PRC’s Vision 2035. This period is a preparatory stage in China's realization of its long-term goal of achieving the income level of developed countries and becoming a developed and sustainable economy by 2035. Education is undoubtedly the most important factor in human capital development, increasing national prosperity, and a source of long-term economic growth. Over the past 20 years, China has caught up on key education indicators with many middle-income and high-income countries. Based on the results of the 14th Plan, we predict that by 2025 China will be able to meet its educational targets and come close to achieving the long-term goals of 2035. Despite the success in some quantitative indicators, the Chinese government should pay attention to the objective problems of current national educational system, in particular its overall basic quality level which is lower than the average one of OECD countries, some hidden inequities such as the more than five-fold gap in financial investment in education between regions and the level of education which is 15 years behind that of the developed countries.

Comparison of the Economic Relations of Russia and China with Central Asian Countries

Central Asia (CA) is one of the key regions in the foreign policy of the Russian Federation (RF) and the People Republic of China (PRC). The interaction of the countries of CA with RF and PRC, the Russian and Chinese involvement in the affairs of the region have inherent characteristics. The significance of the region and its specific states for Russia and China differ, as well as the nature of the relationship of this large group of actors with each other and the rest of the world. This paper analyzes the main directions of the relations of CA with the RF and PRC using an integrated, systemic, comparative-comparative and interdisciplinary approaches. Authors note, that the economic relations of the countries of region with Russia and China are diverse, multi-dimensional and multi-format. They identify and discuss the following key issues: (1) economic and geographical isolation of Central Asia, as well as a number of territories of Russia and China; (2) raw-resource orientation of most economies of the region; (3) weak economic integration in CA, as well as within the framework of concrete key institutions; (4) asymmetry of economic development of Russia and China. It is indicated that it is precisely the solution of strategic tasks that can and should become the main incentive for building mechanisms of multifaceted and full-fledged cooperation at the bilateral and multilateral levels, not only between Central Asia and China, but also between Central Asia and the Russia. This should facilitate the process of regional and interregional economic integration in the interior of the continent to a qualitatively new level, initiate the formation of sustainable institutional framework designed to ensure integrated security (economic, political, social and other) and the progressive development of Eurasia.

The Eurasian Economic Union and the challenge of the BRI: a comparison of their respective impacts on economic development and Russia’s regional leadership

ABSTRACT This article analyzes how China’s Belt and Road Initiative (BRI) has affected the Eurasian Economic Union (EAEU) as a project of regional economic integration. In particular, it examines whether the EAEU and the BRI are transforming the regional division of labor in the EAEU and providing the EAEU economic periphery new opportunities for industrialization and technological upgrading through insertion into international production networks. By comparing the EAEU and the BRI with other regional economic integration processes such as the EU, NAFTA, ASEAN+3 and Mercosur, it highlights the limits of the EAEU as a tool for economic integration and for enhancing Russia’s economic leadership in the region.

ПРОТИВОРЕЧИВОСТЬ ГЛОБАЛИЗАЦИИ И РЕГИОНАЛЬНОЙ ИНТЕГРАЦИИ В КОНТЕКСТЕ ИНТЕГРАЦИОННЫХ ПРОЦЕССОВ ЕАЭС

In the presented paper a certain inconsistency between the processes of globalization and regional economic integration is defined, and the main contradictions which are common to those processes in modern conditions of the world economy are highlighted. Based on the analysis of the reasons, prerequisites and characteristics the authors identify and describe a set of indicants of the modern integration processes in the Eurasian space, in particular the development of the EAEU. They show the necessity for the essential consideration of the integration tasks from the standpoint of interaction of the participants national interests and the supranational management level, as well as they note an importance of developing a mechanism for collective decision-making under the influence of the external macro-environment.

The Trade Effects of Regional Agreements and Economic Integration Processes in Europe, South America, and North America

This article seeks to understand the effects of trade creation and diversion in regional agreements and integration processes in Europe, South America, and North America. Through a systemic literature review, and based on the economic theory of integration, it analyzes the impact of tariff barriers on trading volume through the world, as well as the impact of barriers removals in member and non-member countries that participate in these trade agreements. As hypothesis, it can be stated that the trade effects generated by economic integration processes vary depending on the endogenous conditions of the industries in member countries, in addition to the consolidation phase of the integration processes. For this purpose, a qualitative descriptive methodology, based on an analysis of literature, is used to determine the trade creation and deviation effects of agreements in Europe (European Union), South America (MERCOSUR and CAN), and North America (NAFTA).

United Africa: realistic or not?

There is a proliferation trend of a number of regional economic integrations in the world, as well as their deepening. This global trend spilled over in Africa, where the creation and deepening of regional economic integrations with the ultimate objective/goal of establishing one continental integration is considered a development imperative. A single market of 1.3 billion people can make a difference, from the aspect of trade, productivity, competitiveness, creation of new jobs and higher living standard. This paper aims to provide an overview and discuss challenges and perspectives of the development of regional integrations in Africa with special emphasis on eight regional economic communities recognized as building blocks of the African Union. Accordingly, the contribution of the paper is twofold. First, it gives an overview of the main features of regional economic integration of Africa and the performance of eight regional economic communities. Second, it identifies the main challenges and gains of regional economic integration processes in Africa and offers recommendations for further successful regional integration processes in Africa.

BANK’S INVESTMENT ACTIVITY

The article considers the investment system that is determined by the investment activity of financial institutions. The banking system is a dynamic system, the basis of the economic infrastructure of the market. The bank's investment operations are a complex process because the bank can be both an object and an investor. The bank's investment choices are influenced by the following major factors: expected rate of return, tax characteristics, mortgage requirements, risks.The stability of the banking system depends on the general equilibrium conditions between accumulation and investment demand. The state of the banking system affects investment. The structure of the modern banking system in Ukraine is in line with Western counterparts, and the domestic legal framework in the banking sector is perfect enough to regulate banking processes and ensure the stability of the banking sector. In a broader context, international investment processes are influenced by: the state of development of the world economy, international factor and investment markets; stability of the world monetary system; development of international investment infrastructure and the like. In the context of globalization, international investment is influenced by the interacting processes of trans nationalization and regional economic integration. The effects of global economic factors, on the one hand, offset some of the differences between countries, and on the other, it creates a macro environment for large-scale activity of international entities and investment institutions.

Unity versus Collaboration: Construction of China's Belt and Road Free Trade Agreement 2.0 Network

AbstractIn the context of the United States prioritizing bilateral as well as trilateral trade agreements and China's regional economic integration strategy based on the Belt and Road (B&R) Initiative, the B&R free trade agreement (FTA) and the US–European–Japanese FTA (UEJFTA) have become the two regional economic integration processes with the greatest potential impact on the world economic landscape. The present paper examines the game situation as well as the economic effects of China's B&R‐FTA 2.0 network against the United States' UEJFTA to study the optimization of China's B&R FTA system. By constructing a four‐country extended game model under a two‐part expansion, we find that an increase in members will promote the welfare of each country when there is a single regional trade agreement; the potential member countries tend to choose larger organizations for higher economic benefits when there are several regional trade agreements. Our quantitative simulation shows that promoting the construction of the FTA 2.0 network based on the B&R can significantly alleviate the impact of FTA entered into by the United States with its major trading partners.

Integration and the Diplomatic Crisis: Current Realities of the GCC

The article analyzes the integration process in the Gulf Cooperation Council group countries (GCC), which was founded in 1981. Regional economic integration in the GCC has passed through the several traditional stages: the Free trade zone, the Customs Union and the Common market. Certain exceptions remain in the GCC integration, but the countries aim to create a full economic Union by 2025. Currently, the GCC is one of the most advanced and successful integration associations in developing countries. However, the GCC is the only truly functioning integration bloc in the MENA region. The author's analysis confirms that the share of intraregional trade is growing in the GCC, but this share is less high than in other integration blocs. The author emphasizes that the GCC countries have significant success in the world market of goods and capital. The GCC trade turnover is growing steadily, although it depends on fluctuations in world oil prices. The GCC region attracts a lot of foreign investment and technology. This allows them to continue to diversify their national economies. The level and quality of life in the GCC is improving. These and other achievements are largely the result of regional economic integration and cooperation between countries in various areas on the world and regional markets. At the same time, the GCC is one of the most strategically important regions in the world economy and politics. Economic and political processes are influenced by many factors, both internal and external. Therefore, there are many contradictions in the GCC, and sometimes crisis situations are formed. One of them is the current "diplomatic crisis". It began in 2017 and has so far created numerous problems in the region and in the Arab world as a whole. It also has a negative impact on the development and deepening of integration processes. The author analyzed statistical data for 2009-2018 and justified the conclusion that the "diplomatic crisis" damages intraregional trade, reduces the dynamics of macroeconomic indicators, and worsens the position of the GCC countries in the world market of goods and capital. It also creates difficulties for citizens of GCC countries and companies that operate in the region. Now GCC countries should develop a mechanism to de-escalate the crisis, as this is in the economic and political interests of all participants and the Middle East as a whole. The relevance of the research is due to the need to analyze regional economic integration processes in the subregion in the context of growing global instability. The research makes a significant contribution to understanding the nature and features of integration processes in the Middle East.

DEVELOPMENT TRENDS OF REGIONAL ECONOMIC INTEGRATION: METHODOLOGICAL ASPECT

The article investigates the transformation of approaches to understanding the processes of regional economic integration. The macro-region as a structural element of regionalism is explored. Criteria for typology of regional economic integration are systematized and divided into dichotomous and trichotomous. Factors influencing regional integration and current tendencies of its development are determined. A modern group of regional integration associations is identified, thus improving the existent typology. It includes regional and multilateral associations, hub and spoke regionalism, gravity agreements, plurilateral, bilateral, minilateral regionalism. JEL: F15, F13, F60, R10.

Modern processes of regional economic integration of Ukraine in the context of sustainable development

Ensuring economic sustainable development in difficult political and economic conditions is one of the priority tasks for Ukraine. It is forced to reorient the vector of foreign economic cooperation, in particular, the integration formations of the European Union. The aim of the article is to study the development of the processes of regional integration of Ukraine to ensure sustainable economic development, as well as determine the priority direction of its regional integration. The role of Ukraine in the processes of economic integration at the present stage of development is analyzed. Based on the analysis of the current state and development features of the EU and Ukraine, the prospects for the activation of its participation in integration processes, namely entry into the EU, are substantiated. By analysis, the domestic market of Ukraine, the general state of development and its place in the world market are investigated. As a result, the features and barriers of Ukraine’s European integration and ways to address them were identified, as well as an attempt was made to identify the main areas of cooperation and ways to improve economic relations between Ukraine and the EU.

Regional Economic Integration and Risks for Agricultural Products

This article aims to analyze the impact of regional economic integration on agricultural production risk in the case study of banana value chain in Huong Hoa district, Quang Tri province, one of the provinces located on East-West economic corridor. The article utilises methods of value chain analysis that is mainly based on descriptive statistical analysis, combining with qualitative and quantitative analysis to describe the structure, mechanism of operation and the creation of values. The research results indicate that the bananas are consumed in both the domestic and abroad market, namely: 80% of Huong Hoa banana is consumed in the Chinese market, and 5% is exported to the Thailand market and the 15% remaining is for the domestic market. Banana farmers are the agents holding the highest financial position on all three indicators of cost, marginal revenue and profit, but the least of benefit in channels in all three markets: China, Thailand and domestic market. The study also points out that the highly dependent degree of Chinese market is one of the main factors creating instability and unsustainability of the banana value chain in Huong Hoa district in the long-term. This article highlights the risks of agricultural products (cases of bananas) under the regional economic integration process.

Analysis of Economy and Trade among China, India, and Russia under the Belt and Road Initiative

The Belt and Road Initiative advocated by China is expecting to assist in the infrastructure and financing of participating countries and promote free trade through cooperation with countries along the Belt and Road. China hopes to lead the regional economic integration process through investment-driven trade. Out of geopolitical considerations, Russia and India initially held a relatively negative or cautious attitude towards the Belt and Road Initiative. Therefore, Russia proposed the concept of the Eurasian Economic Union (EEU) in 2011 in order to unite the other independent ASEAN countries based on the customs alliance consisting of Russia, Belarus, and Kazakhstan, and thus create a supranational consortium, which in turn have the ability to compete and cooperate with the Belt and Road Initiative proposed by China. In 2014, India launched the Indian version of the Belt and Road Initiative, named Project Mausam, expecting to promote the integration of economic and trade exchanges around the Indian Ocean with India as the center. However, after recent strikes by the trade war, China actively seeks assistance from India and Russia in order to break through the US trade blockade. During the G20 summit held in Japan in June 2019, China, India, and Russia held a three-party talk. After the talk, the three countries issued a joint statement claiming that “they shall undertake more global responsibilities to protect the fundamental and long-term interests of the three countries themselves and the world”, which seems to have opened up opportunities for future cooperation among the three countries. Therefore, this paper explores the competitive and cooperative relationship among China, India, and Russia under the Belt and Road Initiative.

Администрирование внешнеторговых преимуществ и ограничений как основа стратегии новых стран – членов ЕС

This article analyzes the current aspects of the management of regional economic integration processes in the context of the entry of new member States into the largest integration grouping in the modern world economy – the European Union (EU). Some components of these processes are considered on the example of a number of European countries that joined the bloc at the stage of 2004-2013. The significant trends in the foreign trade policy of the European Union are identified.

ON THE ISSUE OF TAX HARMONISATION PROCESSES WITHIN REGIONAL ECONOMIC INTEGRATION

The tax harmonisation process is presented in the contemporary context of regional economic integration process. The authors suggest that there is a new inevitable economic reason for tax harmonisation within the economic units - namely tax base erosion and profit shifting. The tax harmonisation process in the EU is presented in a systematic way giving reasons and logic of the process. The EEU to certain extent resembles the process. Tax harmonisation within a supranational integration entity covers indirect taxation and only to a certain extent the direct taxation issues. It is consistent with the consequence of introducing the freedoms within the integration process. Another issue of taxation arising within regional economic integration is the allocation of fiscal powers between the member-states at supranational level.

Specifics of Integration Processes in the Former Soviet Union: The Case of the Eurasian Economic Union

In the present settings, the development of the world economy follows a key trend that consists in regional economic integration. It is quite predictable that the member states of the Eurasian Economic Union (EAEU) are promoting the project of economic integration aiming to secure certain positions in the developing new structure of the global economic system. This study aims to establish whether EAEU meets the criteria for an international organization of regional integration, as well as to consider whether the EAEU countries can successfully combine their membership with the membership in the World Trade Organization (WTO). The study was based on specific techniques and methods for the research of phenomena and processes. In a bid to reach the objectives of the study, the authors considered the scientific opinions, online data sources, as well as the analytical data available on the official websites of EAEU, WTO and the Eurasian Economic Commission. The importance of the study lies in the actionable advice on the improvement of integration that was provided based on the analysis of the regional economic integration processes within EAEU. The study concludes that the EAEU was established in accordance with the norms of international law and that the Union possesses every attribute of an international organization. In addition to that, as a result of examining EAEU’s ‘outer borders,’ the study revealed certain problems for the member states in trying to maintain their EAEU membership alongside with the membership in WTO.