Economic Integration Agreement Definition

In cooperation with partners such as the WTO and the OECD, the World Bank Group informs and supports client countries wishing to sign or deepen regional trade agreements. Concretely, WBG`s work is as follows: dynamic analysis began with a new definition of gross domestic product (GDP) as the difference between the sectors` overall revenues and investments (a change in the definition of the value added of GDP). It has been possible to prove analytically that all States benefit from economic unification, with the larger ones achieving less GDP and productivity growth and vice versa in terms of benefits for smaller States. Although this fact has been empirically known for decades, it has been presented as mathematically correct. The dynamic part of the theory of international economic integration, such as the dynamics of trade creation and trade diversion effects, the pareto efficiency of factors (labor, capital) and value added, was mathematically introduced by Ravshanbek Dalimov. This provided an interdisciplinary approach to the previously static theory of international economic integration, showed the impact of economic integration, and made it possible to apply the results of nonlinear sciences to the dynamism of international economic integration. Regional trade agreements are multiplying and changing in nature. Fifty trade agreements were in force in 1990. In 2017, there were more than 280.

In many trade agreements, negotiations today go beyond tariffs and cover several policies that influence trade and investment in goods and services, including rules across the border, such as competition policy, government procurement rules and intellectual property rights. ASAs covering tariffs and other border measures are “superficial” agreements; THE RTAs, which cover a larger group of policies, at and below the border, are “deep” agreements. For a common market to be successful, there must also be a considerable degree of harmonisation of microeconomic policies and common rules on product standards, monopoly power and other anti-competitive practices. There may also be common policies that concern key industries, such as the Common Agricultural Policy (CAP) and the Common Fisheries Policy (CFP). Economic union is a term that applies to a trading bloc that has both a common market among members and a common commercial policy towards non-members, although members are free to conduct an independent macroeconomic policy. If regional economies agree on integration, trade barriers will decrease and economic and political coordination will increase. The degree of economic integration can be divided into seven stages:[3] The trade effects desired by economic integration are part of contemporary economic theory of the second best: where, theoretically, the best option is free trade, with free competition and without barriers to trade. . . .

18.09.2021 ∙ af admin