The Theory and Measurement of International Economic Integration

Introduction: economic integration and GATT rules; the economic gains from integration. Part 1 Theory: theory of customs unions - the Cooper/Massell criticism; customs unions versus free trade areas, establishment of FTA; common markets and economic unions; economic integration amongst developing nations - El-Aggraa's version of Brown's model; macroeconomics of integration; economic integration amongst centrally planned economies - the CMEA. Part 2 Measurement: measuring the impact of economic integration; estimating the impact of integration on manufactures - the earlier studies - Verdoorn's pioneering study, Johnson's contribution, the GATT study; estimating the impact of integration on manufactures - more sophisticated attempts - Balassa's contribution, the contribution by the EFTA Secretariat, by Williamson and Bottrill, Kreinin's contribution, Aitkin's study; estimating the impact of integration on manufactures - the latest contributions - the study by Winters, the contributio by Grinols; the costs of the Common Agricultural Policy of the European community - objectives of the CAP; estimating the effects of integration on the terms of trade - summary of Petith's findings; estimates of the effects of CMEA integration - Peltzman's estimates, the contribution by Drabek and Greenaway; estimates of the effects of economic integration among the LDCs.