Economic Integration Theories: Application to Integration Agreements among Developing Countries

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. One could differentiate certain notions of economic integration theories that deal with the effects, benefits and constrains of economic integration arrangements among developing countries. The article systematizes the theoretical approach­es towards economic integration and outlines those that are relevant to developing countries and their motivation to participate in integration agreements.