MARKET AND TRADE RELATED DETERMINANTS OF ECONOMIC INTEGRATION AMONG DEVELOPING COUNTRIES

Regional integration is often viewed as a way to support development and economic growth in developing countries through the related with it benefits to trade and welfare. There is a clear distinction between the integration processes among developed countries where mainly the classic static and dynamic effects described by classic and new integration theory are sought, and those among developing and least developed countries – where the reasoning, the expected benefits and the clear constrains to the participation in integration arrangements are different. The current paper tries to come up with a conclusion on what parts of classic and new integration are applicable to the integration arrangement among developing countries and tries to summarize these theories in three main groups – general economic, market-related and trade-related factors and effects.