Determinants and effects of regional integration in developing countries: a theoretical analysis

Abstract

The question of regional integration is a subject of research for economic theorists, but also a concern for practitioners in a world characterized by an upheaval in the global economy, a multiplication of regional agreements and the emergence of high-growth countries, all of which have paved the way for a new world order.

Given the complexity of the phenomenon of regional integration, we note the absence of a completed theoretical framework that treats this concept with all its specificities and characteristics, making the development of this branch of international trade unsatisfying. The theory of regional integration has gone through several stages of development, each addressing the economical and the political context of the time. The first is the classical theory, based on a static analysis that explains the possible benefits of the integration. The second, which belongs to the second generation of regional integration theories, deals with integration agreements between developing countries; it is the dynamic analysis of economic agreements. The third generation of integration theories focuses on the determinants, effects, benefits and constraints of regional integration agreements in developing countries.

The aim of this contribution is to shed light on this latest generation of theories. To do this, we will carry out a semantic analysis that describes and exposes these different theories. This work is divided into six sections: the first introduces the subject of this article and briefly outlines the other sections; the second deals with the phenomenon of regional integration in developing countries; the third and the fourth analyze the determinants and effects of this integration; a fifth one presenting the research model and the last, by way of conclusion, summarizes the points that have been addressed.

Keywords: regional integration, determinants, effects, developing countries

JEL Classification: F1 ,F2 ,F4

Paper type: Theoretical Research