Framework
Stages of regional economic integration
The question it answers
Before expanding into a market within a trade bloc, how can a business owner tell which stage of integration it has reached and what that means for moving goods, capital and labour?
- Origin
- Balassa, 1961
- Diagram type
- Comparison table
- Level of analysis
- Industry
- Topics
- Strategy & leadership
Diagram
Stages of regional economic integration
| Criterion | Free trade area | Customs union | Common market | Economic union |
|---|---|---|---|---|
| Internal trade barriers removed | Yes | Yes | Yes | Yes |
| Common external trade policy | No | Yes | Yes | Yes |
| Free movement of production factors | No | No | Yes | Yes |
| Harmonised economic policy under supranational control | No | No | No | Yes |
Pitfalls
Pitfall
The ladder continues to political union.
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Balassa, B. (1961) The theory of economic integration. Homewood, IL: Richard D. Irwin.No DOISource page
- Jetschke, A. and Murray, P. (2012) ‘Diffusing regional integration: the EU and Southeast Asia’, West European Politics, 35(1), pp. 174–191.doi:10.1080/01402382.2012.631320Source page