Measuring the Impact of Economic Integration

Abstract

A growing area of research in the field of international economic integration is concerned with the measurement of the impact of the formation of such schemes as the European Community (EC), the European Free Trade Association (EFTA), the Council for Mutual Economic Assistance (CMEA, or COMECON as it is generally known in the West) and similar associations on the economies of member states and on the rest of the world (W). The purpose of this part of the book is to explain the nature of the problem of estimation, to provide a comprehensive and critical survey of the major attempts at empirical calculation of the effects and to suggest an alternative approach for future studies. This chapter explains the nature of the problem.