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

Abstract

"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 feedback for regional integration projects among developing countries. To support this argument, we present network analyses of intraregional and interregional trade of the European Community (EC), the North American Free Trade Agreement (NAFTA), the Association of Southeast-Asian Nations (ASEAN), the Common Market of South America (MERCOSUR) and the Southern African Development Community (SADC)." (author's abstract)