Economic Integration

The theory of economic integration is the branch of economics studying the various forms of economic cooperation among member states and the rest of the world. Economic integration has been described as the elimination of barriers that prevent or restrict the flow of goods and services into and out of a country. According to an alternate perspective, one can think of economic integration as when the economies of nations in close proximity are organized together into a single economic region.

Economic integration has been described both as a process and a state of affairs. Balassa conceptualized that economic integration as a process refers to the means and measures intended to reduce or eliminate economic discrimination. An alternate perspective suggested that the economic integration process signifies the ...