Towards an analytical framework of regional integration in Western Balkans

Sklias, Pantelis and Tsampra, Maria (2012): Towards an analytical framework of regional integration in Western Balkans.

Abstract

The paper focuses on the regional integration of Western Balkans and its prospects. We enrich mainstream political economic approaches by a framework assessing regional integration with the use of political, cultural, institutional and economic variables: coincidence in political interests and national barriers; common perceptions, values, principles and culture; restructuring and maturity of institutions; production complementarities, trade flows and financial transactions; technology and infrastructures. Evaluating these variables in the Western Balkans, we conclude that integration can proceed through a top-down enforced process by the EU or the International Community rather, than through individual efforts of the region’s nation-states.

• Item Type: MPRA Paper
• Language: English
• Keywords: Regional integration; Western Balkans; political economy variables
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; P - Economic Systems > P2 - Socialist Systems and Transitional Economies; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

References

Afman, E. and Maurel, M. (2010) “Diplomatic relations and trade reorientation in transition countries”. In P.A.G. van Bergeijk and S. Brakman (eds). The Gravity Model in International Trade: Advances and Applications, pp. 278–295. Cambridge: Cambridge University Press.

Andriamananjara, S. (1999). “On the Size and Number of Regional Integration Arrangements: A Political Economy Model”. World Bank Policy Research Working Paper No 2117. Available at SSRN: http://ssrn.com/abstract=170108 or doi:10.2139/ssrn.170108.

Andrianos, I. (2008). The effects of Cultural and Social Particularities upon the Economic Development in Western Balkans (in Greek). Unpublished doctoral thesis, Democritus University of Thrace, 2008.

Balassa, B. (1973). The Theory of Economic Integration. London: George Allen & Unwin

Balasubramanyam, V.N., Sapsford, D. and Griffiths, D. (2002) “Regional Integration Agreements and Foreign Direct Investment: Theory and Preliminary Evidence”. The Manchester School Vol 70, No.3

Baldwin, R., and Wyplosz, C. (2006). The Economics of European Integration. McGraw-Hill, Education: Berkshire.

Balkan Monitor (2010) http://www.balkan-monitor.eu/files/BalkanMonitor-2010 _Summary_of_Findings.pdf.

Bartlett, W. (2009) “Regional integration and free-trade agreements in the Balkans: opportunities, obstacles and policy issues”. Economic Change and Restructuring 42:25–46

Ben-David, D. (1996) “Trade and Convergence among Countries.” Journal of International Economics 40:279-98

Boschma, R. and S., Iammarino (2009) “Related Variety, Trade Linkages, and Regional Growth in Italy.” Economic Geography, Clark University, vol. 85(3), pages 289-311, 07

Carmignani, F. (2007) “A note on income converge effects in regional integration agreements”. Economics Letters 94, 361–366

Dascher, K. and Haupt, A. (2008) “The Political Economy of Regional Integration Projects at Borders Where Rich and Poor Meet: The Role of Cross-Border Shopping and Community Sorting”. CESifo Working Paper Series, No 2280. Available at SSRN: http://ssrn.com/abstract=1120689

Euractiv (2010). http://www.euractiv.com/en/enlargement/perception-of-corruption-in-western-balkans-increasing-news-495141 , published 11/6/2010.

European Commission (2009a). Communication from the Commission to the European Parliament and the Council, Kosovo – Fulfilling its European Perspective, COM (2009) 5343: Brussels, 14/10/2009.

European Commission (2009b). Conclusions on Serbia. Extract from the Communication from the Commission to the Council and the European Parliament "Enlargement Strategy and Main Challenges 2009-2010", COM (2009)533 final.

European Commission (2009c). Conclusions on Montenegro. Extract from the Communication from the Commission to the Council and the European Parliament "Enlargement Strategy and Main Challenges 2009-2010", COM (2009)533 final.

Forslid, R. and G. I. P. Ottaviano (2003) “An Analytically Solvable Core-Periphery Model”, Journal of Economic Geography 3, 229-240

Grossman, G. and Helpman, E. (1995) “The Politics of Free Trade Agreements.” American Economic Review 85(4):667-90

Grupe, C. and Kušić, S. (2005). “Intra-regional cooperation in the Western Balkans: Under which conditions does it foster economic progress?” Discussion Paper 37, Center for the Study of Global Governance, LSE: London.

Hazakis, K. (2011). “Rethinking the interaction between FDI and competitiveness in West Balkans: an institutionalist approach.” International Journal of Economic Policy in Emerging Economies, Vol. 4, No. 2, pp.177–196.

Kathuria, S. (Ed.) (2008) Western Balkan Integration and the EU: An Agenda for Trade and Growth. Washington, DC: The International Bank for Reconstruction and Development/The World Bank

Koutsoukis, K. (1999). Political Development. Introduction in Theory, Methodological Perspectives and Empirical Research (in Greek), Papazisis Publications: Athens.

Koutsoukis, N., Sklias, P. and Roukanas, S. (2011). “The International Political Economy of Processes, Mechanisms and Dynamics for Sustainable Development: the Analytical Framework of Cultural Economics.” International Journal of Sustainable Society, (accepted for publication).

Krishna, P. (1998) “Regionalism and Multilateralism; a Political Economy Approach.” The Quarterly Journal of Economics, Vol. 113, No.1, pp.227-250, MIT: Boston.

Marrewijk, C. van, and P.A.G. van Bergeijk (1993), “Endogenous trade uncertainty: why countries may specialize against comparative advantage,” Regional Science and Urban Economics 23:681-694

Molle, W. (1991). The Economics of European Integration. Aldreshot: Dartmouth.

Nitsch, V. (2007) “Die Another Day: Duration in German Import Trade”. DEGIT Conference Papers c012_037, DEGIT, Dynamics, Economic Growth, and International Trade

OECD (2008) Defining and Strengthening Sector Specific Sources of Competitiveness in the Western Balkans: Recommendation for a Regional Investment Strategy.

OECD (2010) Regional Competitiveness Initiative for the Western Balkans. Presentation by OECD at the 5th Annual regional Event, Competitiveness, Finance and Economic Growth, May 18.

Pelkmans, J. (1984) Market Integration in the European Community. The Hague: Martinus Nijhoff.

Petrakos, G. (2000) “Economic Structure and Change in the Balkan Region: Implications for Integration, Transition and Economic Cooperation.” International Journal of Urban and Regional Research, Vol. 24, p. 95-113.

Petrakos, G. (2002) “Restructuring and development in Southeastern Europe.” Eastern European Economics (special edition)

Pinder, J. (1969) “Problems of European Integration”. In G. Denton (ed.), Economic Integration in Europe. London: Weidenfeld and Nicolson, pp. 143-170.

Schiff, M. and Winters, L.A. (1998) “Dynamics and Politics in Regional Integration Arrangements: An Introduction.” The World Bank Economic Review, Vol. 12, No. 2: 177-95

Storper, M., Chen, Y. and De Paolis, F. (2002) “Trade and the location of industries in the OECD and European Union”. Journal of Economic Geography 2, pp.73–107

Tinbergen, J. (1954) International Economic Integration. Amsterdam: Elsevier.

Venables, J. A. (2003) “Winners and Losers from Regional Integration Agreements.” The Economic Journal, Volume 133, Issue 490, pp. 747-761

Winters, L. A. (1998) “Regionalism versus Multilateralism.” In R.A. Baldwin, D. Cole, A. Sapir, and A. Venables (eds.) Regional Integration. Cambridge, U.K.: Cambridge University Press.

World Bank (2011) World Bank Development Report 2011. Available at wdr2011.worldbank.org.

Yakop, M. and van Bergeijk, P. (2011) “Economic diplomacy, trade and developing countries”. Cambridge Journal of Regions, Economy and Society, Volume 4, Issue 2, pp. 253-267