The Baltic Region

2014 Issue №3(21)

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Theoretical Aspects of Cross-border Integration-based Economic Cooperation

DOI
10.5922/2079-8555-2014-3-6
Pages
68-77

Abstract

In this article the author analyses theoretical aspects of border economy in the conditions of modern processes of integration. The author describes the existing schools and concepts of integration stressing the role of government regulation relating to the deformations in the development of the world economic mechanism. Modern studies focus on the evolution of integration processes, which has largely affected the key elements of the world economic mechanism from classical political economy, monopoly regulation. This resulted in monopolistic competition, imperfect competition, and oligopoly – largely, through all fields and poles of economic growth to certain elements of government regulation and social reproduction on the international scale. The author examines the key elements and stages of economic integration. These stages assume a number of consecutive forms: free trade zone, customs union, common market, complete economic integration, and economic union. The article shows that the transition occurs from the lowest to the highest stages — from the processes of integration involving, firstly, trade market and then capital and labour markets to the integration of social sphere. The theoretical aspects of all these transformations can be easily traced in the case of EU integration processes.

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