Theoretical model of the Trade integration in the CiS region

2014 ◽  
pp. 130-143
Author(s):  
I. Gurova

The paper analyzes the main tenets of economic integration theory in order to reveal the features of the CIS regional integration and propose approaches of its theoretical model development. Quantitative methods have been used to assess the effects of creation and trade diversion, the relationship between bilateral exports, investment and technology exchange. It is established that the integration of the CIS deviates from the traditional model. At the lower stage it is accompanied by deepening cooperation in various sectors that have an effect on trade integration. Thus in contrast to the model of the European Union, it is a “non-linear” one. It is argued that the integration policy in the CIS region must be changed: more attention should be paid to the investment and trade agenda instead of trade.

2020 ◽  
Vol 92 (3) ◽  
pp. 32-43
Author(s):  
M. V. Tomilov ◽  

Against the background of negotiations crisis within the World Trade Organization framework, as well as increasing competition in the world markets, an important element of the state's economic policy is the integration component. The Russian Federation has chosen the deepening of integration interactions within the Eurasian Economic Union (EAEU) as a priority direction in this area. To improve the efficiency of trade integration, it is necessary to increase the total market size. Since the EAEU market has not yet reached the indicators of the other large integration associations (the European Union, etc.), the Union’s members need to conclude agreements with the third countries. The most interesting option in this regard is the rapidly developing Asia-Pacific region (APR). On the basis of results of the free trade agreement between the EAEU and Vietnam the article discusses the integration prospects of the Eurasian block and the Asia-Pacific countries. There are two scenarios: the conclusion of bilateral agreements with the individual regional states and negotiations with the regional integration associations. It was concluded that it is advisable to deepen the integration processes with the main trading partners in the Asia-Pacific region separately, or to conclude a general agreement with the Regional Comprehensive Economic Partnership (RCEP), whose members are almost all the most important states for EAEU (in trade terms) in the region. However, in order to become a full-fledged participant in the negotiations, it is first necessary to sign such an agreement with the ASEAN countries. The results can be used in the economic model development of Russia's integration into the world system and in assessing the prospects for implementation of the national integration strategy.


Author(s):  
Frank Schimmelfennig

Regional integration theory seeks to explain the establishment and development of regional international organizations. Key questions are why and under which conditions states decide to transfer political authority to regional organizations; how regional organizations expand their tasks, competencies, and members; and what impact they have on states and societies in their regions. Whereas regional integration theory started with a broad comparative regional and organizational scope in the 1950s and 1960s, it has since focused on European integration and the European Union. The main (families of) theories explaining the development of European integration—rather than decision making and policy making in the EU—are intergovernmentalism, neofunctionalism, and postfunctionalism. The key debates in regional integration theory have taken place between variants of intergovernmentalist and neofunctionalist integration theory. Intergovernmentalism assumes national governments to be the key actors in regional integration. Governments use regional integration to maximize their national security and economic interests in the context of regional interdependence. Integration outcomes result from intergovernmental bargaining and reflect the regional preference and power constellations. Governments delegate authority to regional organizations to secure their bargaining outcomes but remain in control of regional organizations and the integration process. By contrast, neofunctionalism disputes that governments are able to control the integration process. Transnational corporations and interest groups as well as supranational actors are empowered by the integration process and shape it in their own interest. In addition, integration creates a variety of “spillovers” and path-dependencies that push integration beyond the intergovernmental bargain. More recently, postfunctionalism has enriched and challenged the theoretical debate on regional integration. In contrast to neofunctionalism, postfunctionalism assumes a backlash mechanism of integration. As regional integration progresses and undermines national sovereignty and community, it creates economic and cultural losers who are mobilized by integration-skeptic parties. Identity-based and populist mass politicization constrains regional integration and may even cause disintegration. Regional integration theories have closely followed and adapted themselves to the development of European integration. They cover the establishment and progress of supranational policies and institutions but also the recent crisis of the EU. An exemplary review of their explanations of major development in European integration shows that they are more complementary than competing.


2016 ◽  
Vol 236 (6) ◽  
Author(s):  
Rahel Aichele ◽  
Gabriel J. Felbermayr ◽  
Inga Heiland

Abstract:The European Union is the world’s deepest free trade zone. Amongst its members, it has abolished tariffs and lowered non-tariff barriers. This has led to trade creation within Europe and to trade diversion between EU countries and outsiders. Deep trade integration and the resulting mutual dependence has, in the eyes of many, facilitated political integration. The Transatlantic Trade and Investment Partnership (TTIP) will undo some of these effects by means of preference erosion, so that cross-country trade links within Europe may lose relative prominence. However, the presence of a rich fabric of regional value chains in Europe and substantial income effects could counter this development. We provide insights on the empirical importance of these effects based on a New Quantitative Trade Model. We show that TTIP could indeed lower trade integration in Europe since predicted income effects turn out not to be large enough to overcome the effects of preference erosion. However, there is substantial heterogeneity across sectors and countries. One way to minimize preference erosion would be to promote projects and programs to further deepen the EU’s single market.


2010 ◽  
pp. 94-107 ◽  
Author(s):  
E. Vinokurov ◽  
A. Libman

The paper applies a new dataset of the System of Indicators of Eurasian Integration to evaluate the changes of level and direction of economic interaction of the post-Soviet states in the last decade. It analyzes the integration dynamics in the area of trade and migration as well as on three functional markets of agricultural goods, electricity and educational services. The paper concludes that the level of trade integration on the post-Soviet space continues declining, while there is a rapid increase of the labor market integration. Three largest countries of the Eurasian Economic Community - Russia, Belarus and Kazakhstan - demonstrate positive integration dynamics, but small countries maintain the leading position in the area of post-Soviet integration.


2014 ◽  
Vol 1 (1) ◽  
pp. 47-56
Author(s):  
Milan Palat

Bu çalışmanın amacı, Türkiye’den göç ve Almanya’nın ekonomik göstergeleri arasındaki ilişkiyi, nicel metot yöntemleri kullanarak değerlendirmektir. Türkiye’nin belirsiz Avrupa ile bütünleşme beklentilerine rağmen  Avrupa Birliğinin köklü üyelerine olan Türk göçü devam edecektir. Çok sayıda Türk azınlığın yaşadığı ve hayat standartlarının yüksek olduğu Almanya, Hollanda ve Fransa’ya  büyük bir göç dalgası gerçekleşebilir. Çalışmanın istatistiksel bölümünün sonuçları, toplam göç ile gayri safi yurtiçi hasıladaki büyüme arasında pozitif, toplam göç ile işsizlik arasındaki negatif ve tahmin edilen bağımlılık yönüyle uygunluk içerisinde olan toplam göç ile aylık gelir arasında pozitif ilişki olduğunu göstermektedir. Türkiye’den göçle işsizlik arasındaki ilişki, toplam göçle olan ilişkiden daha düşüktür. Ancak, Almanya’daki yabancı mevcudiyeti ile Türkiye’den göç arasında bir ilişki bulunmaktadır. Bu durum, var olan göçmen topluluğunun olduğu yerin, yeni göçmenleri, köken bağlarına dayanarak cezbetmesi ve maliyet- riskler sebebiyle göçün düşük seviye de olduğuna dayanan kuramsal Ağ teorisi görüşü ile uygunluk göstermektedir. Göç ve işsizlik arasında gözlenen ilişki, Almanya’ya göçün  işgücü piyasasında talepte meydana gelen değişime karşılık geldiği gerçeğini göstermektedir. İşsizlik ve göç olgularının meydana geliş zamanlarında bir aralık  olsa bile  göç, Alman emek pazarında var olan dengesizliklerin azaltılmasında nispeten etkili bir mekanizma gibi görünmektedir. ENGLISH TITLE & ABSTRACTTurkish Immigration to the European Union: The Case of GermanyThe objective of the paper was to evaluate the relationships between immigration from Turkey and economic indicators in Germany using  quantitative methods. Despite Turkey’s unclear European integration prospects, it is predicted that Turkish immigration to  established member countries of the EU will continue. The strongest waves may flow to Germany, Netherlands or France, where numerous Turkish minorities are already present and where the living standards are high. Results from the statistical analysis of the paper showed a positive correlation between immigration total and the growth of gross domestic product. On the other hand, a negative correlation of immigration total and unemployment was found and a positive relationship between immigration total and income total which is in agreement with the expected dependency direction. With regards to  immigration from Turkey it is less correlated to unemployment than immigration total. But there is a correlation between immigration from Turkey and the stock of foreigners in Germany This is in accordance with the theoretical concept of network theory where an existing community of migrants keeps attracting new migrants because the costs and risks associated with migration are lower, thanks to established linkages to the country of origin. The observed correlation of migration and unemployment points to the fact that immigration to Germany responds to changes in demand in the labour market. Even though a time lag may occur in the case of unemployment and immigration, migration appears to be a relatively effective mechanism to offset existing imbalances in German labour markets. 


Author(s):  
Kent Jones

Populism and Trade traces the role of populist trade policy in the increase of global protectionism and the erosion of international trade institutions. Populist anti-trade rhetoric played a major part in US President Donald Trump’s 2016 election campaign, in which he portrayed current trade agreements as elitist measures to undermine US manufacturing jobs, economic security, and the interests of the American people. Upon taking office he proceeded to implement trade restrictions that were unprecedented in the era of GATT-WTO rules. His use of national security criteria for unilateral tariffs on steel and aluminum and his trade war with China represented an abandonment of WTO trade rules and practices. In the United Kingdom, the 2016 Brexit referendum resulted in a vote to leave the European Union, thereby ending the UK trade integration arrangement that had begun in 1973. The referendum campaign drew on UK criticism of EU intrusion on UK sovereignty in presenting the issue in populist terms of elitist control from Brussels set against the interests of the victimized British people. The book develops a conceptual framework of protectionism that links behavioral factors with perceived external threats and voting behavior based on emotion. It also offers a review of trade policies of other populist governments and an assessment of their economic and institutional cost. A concluding chapter provides recommendations for addressing the populist challenge, focusing on adjustment policies, reforms of global trade institutions, and the need to protect domestic democratic processes.


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