First published in 1962, The Theory of Economic Integration
provides an excellent exposition of a complex and far-reaching
topic. Professor Balassa has been remarkably successful in covering
so much ground with such care and balance, in a treatment which is
neither in any way abstruse nor unnecessarily technical. His book
will interest economists in Europe by reason of its subject and
treatment, but it is also a valuable and reliable textbook for
students tackling integration as part of a course of International
Economics and for those studying Public Finance.
He distinguishes between the various forms of integration (free
trade area, customs union, common market, economics union, and
total integration). In addition, he applies the theoretical
principles to current projects such as the European Common Market
and Free Trade Area, and to Latin American integration
projects.
In offering this theoretical study, the author builds on the
conclusions of other writers, but goes beyond this in providing a
unifying framework for previous contributions and in exploring
questions that in the past received little attention ? in
particular, the relationship between economic integration and
growth (especially the interrelationship between market size and
growth, and the implications of various factors for economic growth
in an integrated area).
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