Economic Integration: Systemic Measures in an Input-Output Framework

Dipti Prakas Pal, Erik Dietzenbacher and Dipika Basu

Economic Systems Research, 2007, vol. 19, issue 4, 397-408

Abstract: Countries are linked through trade and for their mutual benefits they often group together. Consequently, trade blocs are formed in some form or another, examples of which are the EU, EFTA, ASEAN, NAFTA, and SAARC. Depending upon the form and the nature of the grouping, trade relations among countries obviously vary across the trade blocs. The pattern and the volume of trade of the participating countries are different and thus cause different impacts on the growth and development of the countries concerned. Also, the nature of integration changes over time. To examine the strength of integration within trade blocs, systemic measures of integration hitherto not available are formulated in an input-output framework. The measures are used, as a case study, to assess the inter-temporal variations in the degree of integration of SAARC.

Keywords: Economic integration; trade coefficient matrix; input-output framework (search for similar items in EconPapers)
Date: 2007
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DOI: 10.1080/09535310701698464

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