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Dynamics of Regional Integration pp 137–184Cite as

Enlarging the Integration Bloc

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Part of the book series: Contributions to Economics ((CE))

Abstract

Along side deeper regional integration among a given number of member states, the enlargement of an existing trading bloc displays the second major form of regional integration. With enlargement, in contrast to a deepening of integration, barriers to trade, factor flows and other regional integration measures between ‘old’ members of the integration bloc remain the same. Rather, the number of member states increases and the relationship between old and new members is altered.

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References

  1. Thereby, we draw on the analysis in Walz (1998).

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  2. Wellisch and Walz (1998) discuss an alternative explanation for the reluctance of especially rich countries to allow for free labor migration while at the same time signing free trade agreements. They argue that migration will distort the optimal national redistribution policy while trade of goods will not. It is shown that even when the two integration steps are equivalent in the absence of state activities, migration turns out to be the inferior integration step compared to trade liberalization due to this distortion of national redistribution policies.

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  3. For a general treatment of trade in assets in an a two-country endogenous growth framework, see Dinopolous et al. (1993).

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  4. A larger variety of issues involved in the enlargement process in the EU (e.g. the impact of fiscal measures such as regional policies and the common agricultural policy) is discussed in a non-technical manner in a CEPR (1992) study.

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  5. Unfortunately, there is little consensus in the empirical literature with regard to the value of the elasticity of substitution e (see Baier/Bergstrand (1998), Chari et al. (1996) and Feenstra(1994)).

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Author information

Authors and Affiliations

  1. Department of Economics, University of Tübingen, Mohlstr. 36, D-72074, Tübingen, Germany

    Prof. Dr. Uwe Walz

Authors
  1. Prof. Dr. Uwe Walz
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© 1999 Physica-Verlag Heidelberg

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Walz, U. (1999). Enlarging the Integration Bloc. In: Dynamics of Regional Integration. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-99807-2_6

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  • DOI: https://doi.org/10.1007/978-3-642-99807-2_6

  • Publisher Name: Physica-Verlag HD

  • Print ISBN: 978-3-7908-1185-8

  • Online ISBN: 978-3-642-99807-2

  • eBook Packages: Springer Book Archive

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