The Economics of International Integration
Miroslav N. Jovanovi ´c
2006
914pages

Contents
Foreword by Richard G. Lipsey vii
Preface xi
Acknowledgements xvii
Abbreviations and acronyms xix
1 Introduction 1
1.1 Issues 1
1.2 Is the multilateral trading system falling apart? 3
1.3 Interdependence 12
1.4 Definitions 15
1.5 Types 21
1.6 Sovereignty 24
2 Customs Unions 28
2.1 Introduction 28
2.2 Static model 30
2.3 Dynamic model 64
2.4 ‘Optimum’ partners for a customs union 156
2.5 Free trade areas 169
v
2.6 Distribution of costs and benefits 173
2.7 Non-tariff barriers 177
2.8 Conclusions or why countries integrate 192
3 Common Markets 208
3.1 Introduction 208
3.2 Labour mobility 213
3.3 Capital mobility 231
4 Economic Union 318
4.1 Introduction 318
4.2 Monetary integration 320
4.3 Fiscal integration and the common budget 383
4.4 Industrial policy in manufacturing and services 461
4.5 Spatial location of production and regional policy 545
4A1 Examples of the putty–clay locational model 642
4A2 Clusters in Italy and Germany 646
5 Integration Schemes 667
5.1 Introduction 667
5.2 Europe 669
5.3 The Americas 674
5.4 Asia and the Pacific 693
5.5 Africa 702
5.6 Conclusion 710
5A1 Council for Mutual Economic Assistance 713
5A2 Eastern enlargement of the European Union 725
6 Measurement of the Effects of International Economic
Integration 771
6.1 Introduction 771
6.2 Models 772
6.3 Conclusion 783
7 Conclusions 787
7A1 Research topics for the future 799
Bibliography 806
Index 857