1. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

3. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

4. Introduction Jacob Viner (1892 - 1970)
International Trade & the World Economy;  Charles van Marrewijk
Introduction
Jacob Viner ( )

5. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

6. Types of regional economic integration
International Trade & the World Economy;  Charles van Marrewijk
Types of regional economic integration
Preferential trade agreement (PTA); ACP countries
Free trade area (FTA); EFTA, NAFTA
Customs union; EEC
Common market; EU
Economic union; EMU

7. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

8. Neo-classical theory of economic integration
International Trade & the World Economy;  Charles van Marrewijk
Neo-classical theory of economic integration
Trade creation

9. Neo-classical theory of economic integration
International Trade & the World Economy;  Charles van Marrewijk
Neo-classical theory of economic integration
Trade diversion

10. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

11. Regional trade agreements
International Trade & the World Economy;  Charles van Marrewijk
Regional trade agreements
COMESA countries

12. Regional trade agreements
International Trade & the World Economy;  Charles van Marrewijk
Regional trade agreements
ASEAN countries

13. Regional trade agreements
International Trade & the World Economy;  Charles van Marrewijk
Regional trade agreements

14. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

15. Regionalism and the new trade theory
International Trade & the World Economy;  Charles van Marrewijk
Regionalism and the new trade theory
Using a Dixit-Stiglitz type model with the world consisting of many provinces which may form b trading blocs, welfare is non-monotonic

16. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

17. Europe and the European Union
International Trade & the World Economy;  Charles van Marrewijk
Europe and the European Union

18. Europe and the European Union
International Trade & the World Economy;  Charles van Marrewijk
Europe and the European Union
Establishing a common market (EEC treaty) with four freedoms:
Free movement of goods (Cassis-de-Dijon case, 1979).
Free movement of persons
Free movement of services
Free movement of capital
The main institutions of the European Union are:
The Council of the European Union
The European Commission;
The European Parliament;
The European Court of Justice
The European Central Bank (ECB)

19. Europe and the European Union
International Trade & the World Economy;  Charles van Marrewijk
Europe and the European Union
Green circle:
former EFTA
Red star:
potential EU member

20. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

21. Future enlargement of the European Union
International Trade & the World Economy;  Charles van Marrewijk
Future enlargement of the European Union

22. Future enlargement of the European Union
International Trade & the World Economy;  Charles van Marrewijk
Future enlargement of the European Union

23. CHAPTER 13; ECONOMIC INTEGRATION
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 13; ECONOMIC INTEGRATION
Introduction
Types of regional economic integration
Neo-classical theory of economic integration
Regional trade agreements
Regionalism and the new trade theory
Europe and the European Union
Future enlargement of the European Union
Conclusions

24. There are many regional trade agreements (RTAs) in the world.
International Trade & the World Economy;  Charles van Marrewijk
Conclusions
There are many regional trade agreements (RTAs) in the world.
We also distinguish FTAs, customs union, common market, economic union.
RTAs in general increase welfare through trade creation, but the discriminatory nature of an RTA may make the net welfare effect negative.
Increased popularity of Regionalism rather than Multilateralism may be bad for the world economy.
EU is most succesful and powerful economic integration scheme; many CEE countries want to join; EU’s political decision process needs to be revised.