Liberal vs. Regulatory Integration Theories, i.e. Convergence or Divergence

Abstract

Since the second half of the 20th century, the development of the world economy has entered a qualitatively new phase, based on integration processes – such as globalisation and regional integration – which can be interpreted in respect of both global and regional dimensions. However, the examination of these processes is not an easy task, mainly because they are a relatively new phenomenon, and their commonly accepted definition is not yet complete. It is not surprising, therefore, that the theories that give their interpretation are characterised by eclecticism, i.e. their conceptual system mixes elements of views and trends that are not always compatible. The aim of this dissertation is also to use statistical methods to support and refute the predictions (convergence/divergence) of two opposing views – the liberal and the regulatory school – on the equalizing effect of economic development differences in the course of the regional integration development of the European Union and other free trade agreements. If we accept the data and the methodology used in my paper – as we will see – the two trends chosen in this respect are not nearly as contradictory as they seem, since in the short and medium term we can measure a divergence corresponding to the regulatory concepts, in respect of which the resulting divergences will, however, in the long term, be levelled out in line with liberal ideas, and will converge also in the case of the European Union and five other communities being studied, namely the North American Free Trade Agreement, the South American Common Market, the Association of Southeast Asian Nations, the Gulf Cooperation Council and the South African Customs Union.