The cooperation effect creation scheme (CEC-Scheme)

The objective of this research paper is to present a suitable scheme of regional integration which can be applied between developing countries and less developed countries. This new scheme is called the Cooperation Effect Creation Scheme (CEC-Scheme). The CEC-Scheme demonstrates the basic conditions for regionalism to succeed in any form, whether open (free trade area) or closed (customs union), between developing countries and less developed countries. This paper proposes that implementation of the CEC-Scheme will facilitate the fulfilment of successful regionalism between developing and less developed countries. The CEC-Scheme will generate the cooperative creating effect within the same regional bloc. In turn, the cooperative creating effect will generate the intraregional trade creating effect in the short term and the interregional trade creating effect in the medium term, which facilitate the growth of regionalism between developing countries and less developed countries