Warning: Invalid argument supplied for foreach() in /home/fericitul/romania-central.com/wp-content/themes/wpremix2/includes/header/header.php on line 44

2.1 The Trade Approach


Academic Research paper and Study of the Economy of Romania and Romanian Business

Most benefits of regional integration can be derived from the theory of international trade,[1] though it has to be stressed that in the case of the EU political goals and considerations al­ways play an additional role.

The trade approach to regional integration applies in a first instance standard classic and neoclassical models to integration phenomena, in particular:

  • Comparative advantages
  • and specialization approaches , in particular the Heckscher-Ohlin model

More recent contributions from trade theory added to the trade approach the following issues:

  • Market size considerations
  • Economies of scale
  • Allocational optimization

Footsnotes

[1] The following sketch of theories is far from being unique. Any manual on international trade in general, re­gional integration or the economics of the EU in particular will feature an excellent insight into the topic. There­fore, references are given only in some cases. Nonetheless, two manuals shall be highlighted: Markusen et al. (1995) not only for being comprehensive but for being as much intuitive as formal and El-Agraa (2004) for an extensive overview of the European economies (including the CEECs) and a large range of foreign economies for ben­chmarking purposes.