Search

Begin New Search Topic Economic Integration Publication Year within 10 Years

1. Korea’s Trade Policy Priorities with Latin America: Future Directions

Author:
Sungwoo Hong
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Despite Latin America’s potential as a trading partner, Korea’s exports to Latin America have continuously decreased over the past 10 years, while imports from Latin America have been increasing. The fact that Korea’s exports to these countries have decreased since the conclusion of FTAs with Chile, Peru, and Colombia suggests that it is time to identify the cause of Korea’s decline in exports to Latin America and seek opportunities to expand exports. One reason for the decline in Korea’s exports to Latin America is the decline in Korean companies' investment in Latin America. The correlation coefficient between Korea’s investment in Latin America and exports is quite high, indicating that the decline in investment since the mid-2010s has had a direct impact on the decline in exports to Latin America. As a short-term trade policy goal to consider, I propose establishing and activating a channel for cooperation between Korea and Latin America. It is possible to establish new dialogue channels and revive existing ones, centered on countries where consultative bodies such as the Resources Cooperation Committee, Senior Policy Council, and Joint Economic Committee have already been established, making this a more cost-effective approach compared to other initiatives As a task to be pursued from a long-term perspective, I propose preparing for the possibility of economic integration between the United States and Central America. Assuming that the conflict between the United States and China will continue in the future, expanding economic integration between the United States and Central America can be positive for Korea in that it can alleviate some of the uncertainty Mexico currently has as a bridgehead targeting the US export market. However, expanding economic integration between the United States and Central America is not only difficult for Korea to directly intervene in, but also requires economic and diplomatic efforts in parallel, meaning it may be difficult to achieve in the short or medium term, and thus needs to be pursued as a long-term task. Central American countries, excluding Nicaragua, may be countries that currently have a demand for increasing the level of economic integration with the United States, and the United States may also consider expanding economic integration with them.
Topic:
Investment, Exports, Trade Policy, and Economic Integration
Political Geography:
Asia, South Korea, and Latin America

2. Assessing ASEAN Economic Integration Progress and South Korea’s Approach Focusing on TBT and SPS

Author:
Sungil Kwak
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
TBT (Technical Barriers to Trade) and SPS (Sanitary and Phytosanitary Measures) have two attributes. They act as barriers to trade expansion by protecting producers, but their importance has grown in terms of consumer protection measures after the COVID-19 pandemic. Rather than eliminating related regulations, achieving harmonization within the ASEAN region can simultaneously serve two objectives: expanding trade between South Korea and ASEAN and improving consumer protection. We assess the level of regional economic integration by measuring regulatory distances among ASEAN member states. We also measure regulatory distances between South Korea and ASEAN, and between Japan and ASEAN. We estimate the impact of ASEAN's TBT and SPS on the export performance of countries exporting goods to the ASEAN region.
Topic:
Regulation, Exports, Trade, ASEAN, COVID-19, and Economic Integration
Political Geography:
Asia and South Korea

3. Reinventing Europe’s Single Market: A Way Forward to Align Ideals and Action

Author:
Matthias Bauer, Dyuti Pandya, Vanika Sharma, and Elena Sisto
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
It is essential for EU institutions and Member State governments to shift their focus from the abstract concept of the “Single Market” to the concrete objective of “legal harmonisation in the EU.” This transition represents a strategic realignment towards more pragmatic policymaking. Adopting a 28th regime to address national regulation discrepancies would align with this goal and enhance the Single Market’s effectiveness in promoting economic growth and competitiveness. Given the EU’s ongoing loss of relative global economic clout, it is crucial to establish an ambitious timeline for implementing the most critical Single Market reforms. The Letta Report serves as a wake-up call to revitalise the EU’s Single Market, emphasising the need for decisive action. Its vision largely hinges on legal harmonisation within Europe, building on early efforts to liberalise markets and establish a truly integrated European market. Despite efforts, “integration fatigue” remains a significant challenge due to legal fragmentation across European economies. Previous reports, from the Cecchini Report in 1992 to the Europe 2020 Strategy, have highlighted persistent issues like regulatory divergences and declining political support for market integration. Despite numerous proposals, progress has been limited, and many challenges persist or have worsened (see Section 2). An analysis of EU reports reveals a shift in policy priorities over time. Initially, there was a strong focus on liberalisation and market opening, with less attention given to state aid and industrial policymaking. The Letta Report highlights the importance of regulatory convergence and harmonisation, reflecting a deeper understanding and recognition of the drivers of EU competitiveness. The rise of nationalism and a shift towards “Strategic Autonomy” within the EU have hindered crucial market reforms. This highlights the importance of aligning laws across Member States to strengthen and reinforce EU’s economic resilience and international competitiveness (see Section 3). EU institutions and Member State governments should set specific goals for “legal harmonisation in the EU.” This shift would address real challenges faced by businesses and citizens, and build political will for necessary reforms. Prioritising legal harmonisation would enhance internal cohesion and align national laws with Union-wide goals. An actionable roadmap – potentially with a 2028 deadline – is crucial to address the substantial gap between ambitious EU strategies and Europe’s economic realities. (see Section 4). Implementing sector-specific and horizontal policies in a new regulatory regime would improve cross-border operations and competitiveness. The Letta Report advocates for a European Code of Business Law to establish a unified regulatory framework, introducing a 28th legal regime to address national regulation discrepancies. Extending this regime to include tax and labour market policies would significantly enhance cross-border operations. The EU and Member State governments can eliminate substantial internal barriers by prioritising key horizontal policies affecting all businesses, such as fragmented tax laws, labour market policies, and social security systems. Simplifying and harmonising these policies on the basis of the facilitation of four freedoms is crucial for unlocking the Single Market’s potential for businesses and workers, boosting the EU’s global competitiveness. Allowing coalitions of willing countries to advance in certain areas of legal integration provides a viable solution to the long-standing Single Market “fatigue”. By enabling smaller groups of Member States to pursue integration in specific areas, the EU can bypass the constraints imposed by rigid voting requirements and achieve greater agility, accountability, and acceptance in EU law-making. This approach not only fosters flexibility but also upholds the fundamental principles and objectives of the EU. To ensure the integrity of the EU legal order and prevent unjustified barriers or discrimination against non-participating members, it is essential to establish safeguards and oversight mechanisms. These measures would maintain cohesion within the Union while allowing for progressive legal integration among willing Member States.
Topic:
Markets, European Union, Digital Economy, and Economic Integration
Political Geography:
Europe

4. Empowering Micro Businesses in Southeast Asia: Addressing Challenges and Harnessing Opportunities for ASEAN Economic Integration

Author:
Haris Zuan, Muhammad Falik Abd Razak, and Intan Murnira Ramli
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Micro, small, and medium-sized enterprises (MSMEs) form the backbone of Southeast Asia’s private sector, with microbusinesses comprising a significant majority. However, many operate informally, posing challenges for state recognition and assistance, particularly when youth manage these enterprises. More available data are needed to prioritise microbusinesses within economic policy. Nonetheless, microenterprises stand to benefit significantly from the region’s robust digital, transportation, and cultural connectivity, making enhancements in these areas crucial for their success. To address these challenges, policy recommendations focus on empowering youth in the micro-economy through digital inclusion initiatives and greater participation in decision-making processes. Additionally, enhancing cross-border payment systems is essential for promoting innovation and digitalisation in payment systems. Standard harmonisation, the adoption of shared data frameworks, and regulatory frameworks are necessary for facilitating faster cross-border transactions and minimising disruptions in payment systems.
Topic:
Business, Regional Integration, ASEAN, Economic Integration, and Inclusion
Political Geography:
Asia

5. Export Controls Game: Rethinking Global Integration

Author:
Sangjun Yea
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The article discusses how geopolitical interests are influencing trade policies and global supply chains, leading to a reevaluation of international relationships. The U.S. and China are specifically highlighted, with the U.S. implementing export controls on semiconductors to prevent China's military advancement, while China responds with its own export restrictions on essential raw materials. Using a game-theoretic model, the study illustrates how countries use export control measures to balance security interests and economic benefits, ultimately impacting the global semiconductor supply chain and production decisions of multinational corporations.
Topic:
Exports, Trade Policy, Economic Integration, Supply Chains, and Semiconductors
Political Geography:
China, Asia, North America, and United States of America

6. Anti-fragmentation: an incomplete diagnosis and wrong solution

Author:
Marek Dąbrowski
Publication Date:
03-2023
Content Type:
Case Study
Institution:
Center for Social and Economic Research - CASE
Abstract:
A study by Marek Dąbrowski (CASE) entitled “Anti-fragmentation: an incomplete diagnosis and wrong solution”, requested by the European Parliament's Committee on Economic and Monetary Affairs (ECON), was published in the Monetary Dialogue Papers series in September 2022. Since the 1990s, the public debt-to-GDP ratio has gradually increased in almost all current euro area member countries. In most of them, it now exceeds the Maastricht reference value of 60%, in several of them – 100%, and in a few cases – even more. It creates a severe challenge to the stability of public finances, the entire financial system and monetary stability in the euro area being also the primary cause of the so-called fragmentation. The study begins with an analysis of the excessive public debt in the euro area. An overview of the fiscal stance in the euro area as a whole and, separately, in individual Member States from 1997 to 2021 is complemented with the analysis of mechanisms of fiscal discipline – again on the EU/euro area level and the national level separately. Three causes of the ineffectiveness of these mechanisms are then identified: (1) political economy factors at the national level; (2) political economy factors at the European level; and (3) fallacies of economic science. The next part concerns ECB involvement in the sovereign debt market in the euro area. A historical analysis is conducted starting from the period of the EFC (2010–2015) to quantitative easing of 2014-2022. Two important periods from recent history are detailed - additional quantitative easing of the pandemic era (2020–2022) and the turn towards monetary policy tightening in 2022. In the last part of the study, the author argues that the problem of “fragmentation” is wrongly formulated. It is a secondary symptom of the excessive sovereign indebtedness in some euro area economies. It should be remedied by fiscal policy measures (fiscal consolidation) rather than by the ECB’s quasi-fiscal activities. The latter is not consistent with its legal status, compromises its independence (and credibility of the euro), and undermines its ability to deliver on its price stability mandate. When a targeted market intervention is necessary, it should be provided by the European Stability Mechanism, the institution created for this purpose in 2012, instead of the ECB.
Topic:
Globalization, European Union, Finance, Trade, and Economic Integration
Political Geography:
Europe

7. Global value chains: Potential synergies between external trade policy and internal economic initiatives to address the strategic dependencies of the EU

Author:
Agnieszka Skowronek and Jan Hagemejer
Publication Date:
03-2023
Content Type:
Case Study
Institution:
Center for Social and Economic Research - CASE
Abstract:
Global value chains enable two-thirds of international trade, notably for the EU. The EU wants to preserve its commercial links with third countries and organisations to make up for trade disruptions. This study examines sustainable supply of raw materials, commodities, and critical goods using the EU's Open Strategic Autonomy concept. It examines which raw material are crucial for sustainable supply and necessary for the green transition. The paper examines EU internal legislation and international cooperation instruments to determine the EU's disruption risk. It evaluates the economic impact of EU preferential trade agreements on raw material availability. The study illustrates the political and economic relevance of raw material partnerships and plurilateral and bilateral trade agreements. It analyses the EU's toolbox for safeguarding its interests and making independent trade choices to counteract other actors' unfair practices and intervention. Finally, the paper examines regulatory frameworks, international alliances, and activities to find ways to strengthen global value chains in critical EU industries.
Topic:
Globalization, European Union, Trade, Global Value Chains, and Economic Integration
Political Geography:
Europe

8. Cooperative Federalism in India: Parallel Streams: Political Federalism and Economic Integration in India

Author:
Niranjan Rajadhyaksha and Prakhar Misra
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
Economic integration is an important component of the design of political federations, a fact that was evident to the framers of the Indian constitution, but has been given inadequate attention in much of the subsequent literature on Indian federalism. In this paper, we examine the slow progress of economic integration in India, revisit the policy debates on the need for fewer barriers on interstate trade, and end with a set of unfulfilled recommendations to further strengthen cooperative federalism in India.
Topic:
Constitution, Economic Integration, and Cooperative Federalism
Political Geography:
South Asia and India

9. The Labour Market Entry and Integration of Refugees and Other Migrants in Austria

Author:
Stefan Jestl and Maryna Tverdostup
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the labour market entry of refugees and other (non-humanitarian) migrants originating from middle- and low-income non-European countries that arrived in Austria in 2014-2016. Specifically, we analyse factors that shaped the transition to and out of the first job in the Austrian labour market, document the characteristics of the first job and explore job stability in Austria. Even though refugees took longer to find a job, individual and household characteristics, as well as labour market indicators, are associated with the time between arrival and the first job in Austria, similar to other migrants. Refugees and other migrants also found similar job types as their entry jobs, which tended to be located in low-wage segments. The results, however, suggest that other migrants held their first job, on average, for a longer time than refugees. Although other migrants quit their first job relatively quickly when it was marginal employment, refugees tended to hold marginal jobs as long as full-time and part-time jobs. Finally, our results suggest that entry jobs with a higher quality in terms of working hours and wages (i.e. full-time jobs) tended to be linked with job stability, while entry jobs with a lower quality (i.e. marginal jobs) tended to be associated with job instability for both refugees and other migrants. The results of the paper showcase the importance of immediate access to various training and re-education programs for refugees to improve the quality of their entry jobs and their long-term prospects in the Austrian labour market.
Topic:
Migration, Refugees, Labor Market, Economic Integration, and Jobs
Political Geography:
Europe and Austria

10. Economic Integration of Venezuelan Immigrants in Colombia: A Policy Roadmap

Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
This paper studies the formal labor market integration and firm creation of Venezuelan immigrants and refugees in Colombia between late 2019 to late 2021. It applies a novel framework to identify segments of the Colombian economy where Venezuelan immigrants and refugees are lagging behind. When it comes to labor market dynamics, we identify professional services as one of the sectors where Venezuelan workers are not integrating fast enough consistently across different parts of the country, hinting that the recognition of professional credentials might be an important bottleneck to effective integration. As for entrepreneurship, we find that sectors where there are fewer firm creations by foreigners as compared to locals include commerce and service industries all across the nation. This paper is accompanied by a set of downloadable files which list sectors of the economy in each geographic department with poor integration of Venezuelan immigrants both for labor markets and firm creation. These lists are meant to be used by national and local policymakers for further investigation of possible market failures or distortions hindering immigrant integration, given our results.
Topic:
Economics, Labor Issues, Immigration, and Economic Integration
Political Geography:
Colombia, South America, and Venezuela