Theory Of Economic Integration Research Articles

The EU’s 2020 summit on the COVID recovery fund: leading the divided house to a consensus

Research methodology The writing of this case study was triggered by the numerous media reports in 2020 that talked about the EU nations losing its solidarity. EU being a very appropriate example of economic, monetary and customs union while teaching theories of economic integration and international relations, the post-pandemic approach of EU leadership to rebuild the crisis-ridden member nations seemed an excellent material for developing a teaching case study. The case study was written based on secondary data and published information available. Enough desk research was undertaken to build the characterisation of the protagonists and due diligence done to chronologically report all facts of the case as the story developed. It was decided to build the epilogue into the case study so that the case analysis had enough depth. Case overview/synopsis The case is set in 2020 when the global economy was reeling under the massive impact of a lockdown and the aftermath. The case study examines the model of economic union in international business and the various challenges that governance of an association of nations such as the 27 member EU can throw up. It examines the conflict of interest that can arise among member nations during critical circumstances such as the pandemic and its massive tolls. EU had established itself as a critical international trade player and had already proven their might as a united entity to the world trade partners, given the fact that they were not only a customs union but also a monetary union. In this scenario when the pandemic threw them into the whirlwind of lockdown-induced crisis, the united front of the mighty EU all but crumbled. As the worst-hit economies of Italy and Spain struggled to pull themselves back to normalcy, EU experienced one of its worst solidarity crises. EU’s president Angela Merkel and ally French President Emmanuel Macron with support from the EU Council’s President Charles Michel stepped forward to resurrect the badly hit economies. They viewed this as the best opportunity to bring about a united front by coming together at Brussels for a summit when lockdown eased up in July 2020. It was to be a show of unity to jointly bail out the severely affected member nations by grants rather than loans. The summit, however, snowballed into bitter arguments and open bickering between the wealthy and not-so-wealthy members, and they could not agree upon the issue of debt vs aid. The fact that the EU was an agglomeration of 27 nations, which were far from homogenous in socioeconomic status, not to speak of divided political ideologies, only added dimensions to the dispute. Negotiations repeatedly hit roadblocks. Can the EU leaders lead their bitterly divided house to a consensus? Complexity academic level The case is suitable for graduate and post-graduate levels. Management courses where international business studies, international trade blocs and global leadership are part of curriculum can use the case to teach concepts of “Regional economic integration”, “Economic and Political union” and theories of “International relations” and “Negotiation”. It can also be ideally used in an executive management programme on “Global Leadership” to highlight the complexities of “governance of international associations” and “consensus building amidst diversity”.

Reflections on FDI in an post-communist country in the context of EU membership: retrospectives and prospects

ABSTRACT Participation of a country in the European Union and hence the participation in the European single market, have obvious consequences for capital flows, including those in the most advanced form, i.e. foreign direct investment. Foreign direct investment is considered one of the major incentives of economic integration. Thus, this study reflects on the impact of EU membership on FDI inflows to Poland as an EU member and signals key priorities for further integration. The theoretical foundation of the study resides in the theses of the new theory of economic integration and the investment development path theory. The paper employs the descriptive approach and inductive reasoning. We highlight the benefits resulting from the position of Poland on the investment development path and indicate possible associated threats. Moreover, we discuss retrospective reflections, some of the prospects, and possible directions of action recommended to optimise the future benefits of hosting foreign investors.

A contested foundation of European integration: The free movement of labour

Abstract Since the eastern enlargement of the European Union (EU), the movement from east to west has become the main driver of intra-EU mobility. Recently, the free movement of labour has been contested not only in the debates around Brexit, but also in other receiving countries. It is not on the political agenda, but several studies have highlighted the economic and demographic effects of massive emigration in eastern EU Member States. More recently, the COVID-19 pandemic has disrupted the functioning of free movement. Economic integration theory assumes that migration continues until wages are equalized in the receiving and sending countries. This paper analyses the perception of intra-EU mobility in the literature and empirically tests whether there is a relationship between the dynamism of income growth in the receiving (Germany, Austria and Spain) and sending (Central and Eastern European) countries, and the dynamism of migration. The empirical results do not support the neoclassical assumption that an equalization mechanism can function, even in the long run. To cope with recent challenges, this paper argues that free movement should not be considered as an element of a spontaneous market mechanism, but as an economic-political product, based on a constitutional order.

RETHINKING REGIONALISM BEYOND EUROPEAN INTEGRATION

The post-Cold War era has witnessed a notable proliferation of regional organizations in Asia, Africa, and Latin America. This “new regionalism” wave stands distinct from the process of European integration following World War II, as it is characterized by its expanding scope, diverse nature, fluidity, and heterogeneity. Traditional Eurocentric theories of economic integration, which presumed the establishment of supranational institutions, possess limited applicability when regionalism evolves as an intergovernmental endeavor among sovereign states. Consequently, the prevailing notion of Europe as a model for regional integration worldwide is challenged by this regional trend. This article aims to provide a theoretical framework for understanding the phenomenon of “new regionalism” that is compatible with the socio-economic and political realities of developing countries, particularly considering their reluctance to compromise political sovereignty. It begins by examining the evolution of Eurocentric theories of economic integration and underscores their limitations in the context of the developing world. The concluding section presents a theoretical framework that extends beyond Europe for comprehending regionalism. Keywords: Regionalism, Europe, Integration, New Regionalism.

The Conceptual Framework of Economic Cooperation and Integration between OIC: Empirical Evidence on Effects of Trade on Cooperation and Integration

Objective - This study aims to illustrate the conceptual framework of economic cooperation and integration between OIC countries. It also highlighted on Economic cooperation and integration theory. Methodology - This paper follows descriptive analysis approach to describe the conceptual framework of cooperation and integration between OIC countries. This paper describes the conceptual framework of economic cooperation and integration between OIC. Itexplores the channels through which trade can contribute to cooperation and integration. This study highlighted the cooperation between OIC in the light of economic integration theory. Findings - The results of this study discover the dynamic relationship between trade balance and macroeconomic elements. Novelty - This study also explains the empirical evidence on effects of trade on cooperation and integration. The study recommended to compare the results with European Union to understand the effects of trade on cooperation and integration between OIC countries. Type of Paper - Literature. Keywords: Economic Cooperation, Economic integration theory, Trade Balance and Macroeconomic Elements.

The Conceptual Framework of Economic Cooperation and Integration between Oic: Emperical Evidence on Effects of Trade on Cooperation and Integration

This study aims to illustrates the conceptual framework of economic cooperation and integration between OIC countries. This paper follows descriptive analysis approach to describe the conceptual framework of cooperation and integration between OIC countries. This paper describes the conceptual framework of economic cooperation and integration between OIC. It explores the channels through which trade can contribute to cooperation and integration. This study highlighted the cooperation between OIC in the light of economic integration theory. The results of this study discovers the dynamic relationship between trade balance and macroeconomic elements. This study also explains the empirical evidence on effects of trade on cooperation and integration. Keywords: Economic Cooperation, Economic integration theory, Trade Balance and Macroeconomic Elements.

EAEU Policies and Governance – The Future of Eurasian Integration

The article evaluates policies and governance of the Eurasian Economic Union (EAEU) and validates the future of Eurasian integration. In order to avoid volatility of quantitative indicators and externalities that may lead to uncertain predictions, the means for this task include: Firstly, a qualitative analysis of EAEU constituents, namely of Customs Union (CU) and Common Economic Space (CES) policies, as well as of the functions of Union’s bodies in accordance respectively with theories of economic integration and theoretical approaches on state sector’s effective operation. Secondly, the strategic dimension of collaboration of EAEU member states in other Eurasian organizations and associations, such as the Commonwealth of Independent States (CIS) and the Greater Eurasian Partnership (GEP), in relation with Russian grand strategy and its dynamics on global order.

Regionalism in the Modern World Economy: Evolution and Main Trends

The proposed article is aimed at identifying the essence, history of development and evaluation of the current stage of regionalism. The principles of the theory of economic integration are briefly outlined, including its forms and their practical implementation. The author discusses the regulation of integration agreements within the framework of the GATT - WTO multilateral trade system. The motives for the participation of states in integration agreements, such as strategic, political and economic ones, as well as participation of the country in global and / or regional value of chains, are examined in detail. The author characterizes the main trends of modern regionalism and well-known integration mega-projects, such as the Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership. The main results of the study, which the author came to: 1) regionalism is a politics, and regionalization is the process of uniting countries into a larger region with elements of the free movement of certain factors; 2) old regionalism reflected the goals of promoting the growth of international trade and ensuring security. It corresponds to the concept of shadow integration; 3) the new regionalism was the result of an integrated approach to the development of globalization and a multipolar world. It is characterized by the concept of deep integration with deeper integration processes; 4) when signing the RTAs, the country takes into account strategic, political and economic factors; 5) integration agreements vary in scope and structure, reflecting the growing differentiation of the global trading system and the diversity of bilateral and multilateral regional trade agreements; 6) the signing of mega-projects reduces the effect of spaghetti bowl due to a decrease in the number of bilateral integration agreements between countries and the development of general rules of trade, and also simplifies international commercial disputes; there is a gradual unification of not only the rules of law, but also their interpretation and application.

THE CONCEPTUAL FRAMEWORK OF ECONOMIC COOPERATION AND INTEGRATION BETWEEN OIC: EMPIRICAL EVIDENCE ON EFFECTS OF TRADE ON COOPERATION AND INTEGRATION

This study aims to illustrates the conceptual framework of economic cooperation and integration between OIC countries. This paper follows descriptive analysis approach to describe the conceptual framework of cooperation and integration between OIC countries. This paper describes the conceptual framework of economic cooperation and integration between OIC. It explores the channels through which trade can contribute to cooperation and integration. This study highlighted the cooperation between OIC in the light of economic integration theory. The results of this study discovers the dynamic relationship between trade balance and macroeconomic elements. This study also explains the empirical evidence on effects of trade on cooperation and integration. The study recommended to compare the results with European union to understand the effects of trade on cooperation and integration between OIC countries.

Karl Polanyi: a theorist of mixed economies

Karl Polanyi’s scholarship is interpreted in radically different ways. The “hard” reading of Polanyi sees him as a radical socialist; the “soft” reading presents him as a theorist of mixed economy. This article sides with the soft interpretation. It uses Polanyi’s biography to explain his theoretical “elusiveness,” presents a novel interpretation of his three types of economic integration, claiming all economies are “mixed.” While it acknowledges Polanyi as one of the major sources of world system theory, it claims that Polanyi saw not only the dangers, but also the necessity and positive consequences of globalization. Finally, it shows that, in spite of Polanyi’s life-long commitment to the political left, his scholarly work did not offer an apology of socialism. Instead this article uses Polanyi’s theory of economic integration to build a critical political economy of state socialism.

The ASEAN WITHOUT A CUSTOMS UNION OR A SINGLE MARKET CONSEQUENCES OF THE ASEAN ECONOMIC COMMUNITY BLUEPRINT 2025

Abstract
 In the ASEAN Economic Community blueprint 2015 the term “single market” was used as a goal of economic community. Theoretically, single market is a level of economic integration after customs union. Under that blueprint, customs union could have a chance to be established as a necessary prerequisite for single market. However, the new blueprint 2025 does not adopt single market concept anymore. Different terms have been introduced namely “integrated and cohesive economy” and “unified market”. This article aims at assessing economic integration concept adopted in the ASEAN Economic Community blueprint by utilizing content analysis. It will review the change of concept by employing economic integration theory in order to indicate the direction of economic community goal. The finding is that the change of terms reflects the change of concept. As a result, ASEAN Economic Community will have a different direction in pursuing economic integration. Therefore, under the new blueprint ASEAN will not proceed to customs union and single market. However, it will remain at free trade area level of economic integration. In addition, ASEAN will not be a close trade block but tend to be an open regionalism in relation to non-ASEAN countries or regions.
 Keywords: ASEAN Economic Community, Customs Union, Single Market, Economic Integration, Open Regionalism.

Reflexiones sobre el proceso de integración de la Alianza del Pacífico desde la perspectiva de la competitividad e inversión en ciencia y tecnología: retos para la integración comercial futura

Currently, economic and commercial integration processes characterize the relationships between regions and countries of the world, without excep-tion. With that in mind, in 2011 in Latin America, the creation of the socalled Pacific Alliance (PA) was formalized, conformed by Mexico, Chile, Colombia, and Peru. With this alliance, these four countries sought to increase their mutual trade and investment flows, to encourage their production of goods and services. The objective of this article is to analyze from the creation of the PA, the factors that explain the evolution of trade and investment between the four countries, using the exploratory method. The results indicate that to this moment, the PA is far from achieving its objective of greater integration and economic growth in each country, this being its main contribution: contrast the objectives that the theory of economic integration postulates versus the results achieved in practice by the PA.

FOREIGN DIRECT INVESTMENT LAW IN ASEAN COUNTRIES: PROSPECT FOR ASEAN ECONOMIC COMMUNITY

<p>The development of ASEAN towards the establishment of ASEAN Economic Community (AEC) at the end of 2015 has brought into sharp focus on the issue of economic and financial integration in the region. The ASEAN region has been the largest recipient of FDI, relative to GDP in Asia Pacific. Between 1952 and 2012, Singapore accounts for more than half of total FDI to the whole region. Thailand ranks the second with a 13 percent share, followed by Indonesia, Malaysia, Vietnam and the Philippines which account between 13 to 8 percent. Foreign direct investment into ASEAN recovered from the world economic crisis and regained its 2007 level of USD 76 thousand million in 2010. ASEAN Dialogue Partners comprising EU, USA and Japan accounted USD 64 thousand million, while the share of Intra-ASEAN in this total was 16% which indicates the progress of ASEAN integration. Theories of economic integration and market liberalization have been used to explain the role of foreign direct investment in developing countries. This paper aims to examine ASEAN’s financial integration prospects. ASEAN integration could accelerate in the years ahead with enhancing financial infrastructure and reliable flexible policy frameworks. On the long term closer engagement among member countries could potentially increase real incomes and accelerate real convergence.</p>

La difusión tecnológica y la industria aeroespacial en Sonora

El artículo presenta una descripción breve de algunas teorías de la integración económica que nos permitirán encontrar los elementos, desde la perspectiva del desarrollo endógeno, la relación de la industria aeroespacial con la economía local. Por tanto, el objetivo del artículo radica en conocer el proceso de difusión tecnológica, la evolución y proyección que presenta la industria aeroespacial en la entidad.

Economic impact of Chinese tourism on Australia

China’s trade, tourism and limited foreign direct investment (FDI) to Australia have been regarded as playing an important part in Australia’s growth and prosperity in recent years. In spite of the fact that these activities are the three principal growth determinants in modern economic integration theory, growth studies based on this theory’s structural framework, while highly appropriate, have hardly been undertaken. This article proposes to fill the gap by formally developing an endogenous causal model of simultaneous growth and tourism for policy analysis. In this model, trade, FDI and tourism are specified as the main contributing factors to growth. Simultaneously, gravity theory (including growth) and the Ironmonger–Lancaster new consumer demand theory determine tourism, while ‘economic conditionality’ potentially affecting both growth and tourism in the sense of Johansen is recognized and incorporated. The model is then applied to Australian and Chinese data for the important post-Japanese tourist boom period 1992–2015, to provide substantive findings on three questions: the impact of Chinese tourism to Australia, Chinese tourism determination and the effects of Chinese trade and key macroeconomic indicators on Australian economic growth. Significant policy implications are then developed for use by government tourism planners and policymakers.

THE ASEAN SINGLE MARKET: A COMPARATIVE STUDY

This paper examines the ASEAN Single Market policies and strategies whilst making a comparative study with the similar efforts carried out in the European Union (EU). The integration efforts in ASEAN are compared with that of the EU noting that the theory of economic integration saw its birth as the European countries embarked in a regional integration mission. ASEAN, on the other hand, mirrored the single market aspirations against its own diverse geopolitical backdrop and hence resulting in the launch of a single market which is unique to the region. This study compares the evolution of policies for technical barriers to trade in ASEAN and the EU to examine the motivations for the single market in ASEAN.              Keywords: ASEAN, single market, economic integration

THE NEED FOR AN ECONOMIC INTEGRATION IN THE GLOBALIZED WORLD

EU is in the existential crisis. The question is why that is so and what are the facts which might help to resolve the problems that are part of the EU existential crisis. In the paper the economic position of the EU in globalized world is analyzed and used as the argument for a broader interest to support the future existence and success of the EU integration functioning. Theoretical explanations are introduced to support the notion of the needed further EU integration functioning. Use of the theory of economic integration and trade, leads analyze to the observations that are essential for the needed change and improvement of the solidarity and cooperation among the EU member states in the future. States in the accession to the EU process or to be candidate stats are especially disturbed with the present status of the EU integration crisis functioning. Based on the selected theoretical explanations and selected statistics the paper shows that the candidate countries undoubtable have interest and need to continue their efforts to conclude successfully the EU accession process. Continuation of the accession efforts among the accessing countries might create an atmosphere of specific positive support to the EU states that are straggling for reforms and improvements in the functioning of their economic and general integration environment. The needed EU integration reforms will be further supported by the improved broad EU population’s understanding of the economic impacts that have been created through the so called economic globalization process in last few decades. Some arguments for improved EU population’s understanding of the EU advantages in the environment of the globalized markets are offered in the paper. The option of EU economic integration disruption, with creating small national markets that could be under the negative pressure from large global entities, is supposed to be nonacceptable.

ТЕОРЕТИЧЕСКИЕ ПОДХОДЫ К ПРОБЛЕМЕ ИЗУЧЕНИЯ ДИФФЕРЕНЦИРОВАННОЙ ЭКОНОМИЧЕСКОЙ ИНТЕГРАЦИИ

Some theoretical and practical aspects of integration relations in regional groupings has not been studied and require further analysis. Economists and other practitioners stress that there has not been developed yet a unified theory of integration covering various aspects of this process. Analysis of domestic and foreign scientific literature shows that currently there is no clear definition of the «differentiated economic integration» concept, which is a system of alternative theories of international economic integration.In this study the emphasis is placed: firstly special attention is paid to economic integration, not political. Initially, differentiated integration was positioned as multi-level governance in the field of decision-making that allows us to speak about the political nature of the concept. In this article, we attempt the study of differentiated integration through the prism of economic categories. Secondly, in accordance with the subject of study, special interest triggers not the classical theory and approaches of economic integration, but the system of alternative theories of economic integration.

Transatlantyckie partnerstwo w dziedzinie handlu i inwestycji - wsparcie czy zagrożenie dla wielostronnych porozumień międzynarodowych?

The article analyzes the benefits and costs of establishing the Transatlantic Partnership in the field of trade and investment for the United States, the European Union and third countries, in the context of theory of economic integration and WTO regulations. The following factors that increase the strength of the beneficial trade creation effect were analyzed: the place of the United States and the European Union in world trade, the importance of intra-regional trade in total trade, the share of sectors in the integration process, the level of customs duties before integration. The negative impact of TTIP for third countries was also examined. A The TIPP and WTO agreements were compared, particularly the attempts to regulate investor-state disputes in TTIP.

From Power Transition to Economic Integration Theory: A Review of the BRICS Literature

During the last decade, many scientific articles have been published in political science about the formation of BRICS and the therewith related possible change of the international order.However, this topic has attracted much less attention in the economics literature. Based on a selective literature review of articles in political science and economics we summarize their findings from both disciplines, and analyze the economic and political development of the member states before and after having formed this alliance. A conclusion is that this collaboration is in fact becoming increasingly important for the world economy, international order, and the catching-up development in poorer world regions. This entails various challenges for related research, like the study of potential trade effects of a closer BRICS cooperation.