Economic Integration Theories and the Developing Countries

Abstract

Economic integration theory goes through two development stages each of which addresses the relevant for its time political and economic context The first stage is regarded as classic theory or static analysis and includes the traditional theories of economic integration that explain the possible benefits of integration. The second stage includes the new economic integration theories that are often referred to as dynamic analysis of economic arrangements. Besides these two, there is a third type of integration theories that deals with the effects, benefits and constrains of economic integration arrangements of developing and least developed countries. The current paper tries to come up with a conclusion on what parts of the classic and new integration theories are applicable to integration arrangement among developing countries and to summarize these theories.