type="graphical" xml:id="gpol12145-abs-0002"> <p>The potential of the SGP in preventing future economic crises should not be underestimated. <blockFixed type="graphic" xml:id="gpol12145-blkfxd-1001"> <mediaResourceGroup> <mediaResource alt="image" href="urn:x-wiley:17585880:gpol12145:gpol12145-toc-0001"/> <mediaResource alt="image" mimeType="image/png" rendition="webHiRes" href=""/> <mediaResource alt="image" mimeType="image/png" rendition="webOriginal" href=""/> </mediaResourceGroup> </blockFixed>

Economic integration can cause significant adjustment costs and call for economic structure flexibility which will make the relocation of production factors within or between industries less expensive. Based on new trade theory, the integrated economy approach allows an insight into different...