DYNAMIC EFFECTS OF ECONOMIC-INTEGRATION - A SURVEY

This review article discusses recent models investigating the long-run effects of economic integration. Using endogenous growth approaches t his literature looks at the channels through which integration policie s (trade liberalization, liberalization of factor mobility, free flow of technological knowledge, etc.) might change the long-run growth rat es and specialization patterns of countries involved. We distinguish b etween international integration, referring to the integration of a co untry in the world economy, and regional integration, i.e., the format ion of regional integration blocs.