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Interdependence vs. dependence:: a network analysis of regional integration projects in Africa, America, Asia and Europe

Sebastian Krapohl,Simon Fink-2009-01-01-Social Science Open Access Repository (GESIS – Leibniz Institute for the Social Sciences)

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"Integration theories usually either implicitly or explicitly assume that regional integration is driven by intraregional economic interdependence, which allows for the utilisation of economies of scale or comparative cost advantages within the region. However, following the new regionalism of the 1990s, it has become clear that regional integration may also be used by the respective member states to improve their standing in the global economy, to become more attractive for foreign direct investment and development aid, or to be more powerful in international trade negotiations. In this paper, we argue that the latter motive is more important for developing countries than the former two, because developing countries are more dependent on economic relationships with other regions than on those with their neighbours. Thus, in order to understand regional integration in the Southern hemisphere, integration theory needs to incorporate interregional relationships and the resulting positive

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"Integration theories usually either implicitly or explicitly assume that regional integration is driven by intraregional economic interdependence, which allows for the utilisation of economies of scale or comparative cost advantages within the region. However, following the new regionalism of the 1990s, it has become clear that regional integration may also be used by the respective member states to improve their standing in the global economy, to become more attractive for foreign direct investment and development aid, or to be more powerful in international trade negotiations. In this paper, we argue that the latter motive is more important for developing countries than the former two, because developing countries are more dependent on economic relationships with other regions than on those with their neighbours. Thus, in order to understand regional integration in the Southern hemisphere, integration theory needs to incorporate interregional relationships and the resulting positive

Keywords

Regional integrationGeographyPolitical scienceRegional scienceEconomic geographyEconomyDevelopment economicsInternational trade

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