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The Role of Institutions in International Economic Integration

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  • Natalia Petrovna Ryzhova

    (Economic Research Institute FEB RAS)

Abstract

The article reviews the studies on the subject of international economic integration, based on new institutional economic theory methodology. It is shown that formal agreements on international economic integration are aimed at transaction costs reduction via trade barriers cut; however, national governments can’t adjust informal barriers such as linguistic, religious, cultural differences and various kinds of predatory behavior. The author focuses on the types of international economic integration, which arise from coherent, parallel and conflict relationships between formal and informal institutions, constituting the process of economic integration. The article emphasizes the studies discussing not just the effects of the correlation between formal and informal institutions on the process of international economic integration, but also the positive externalities in the form of quality improvements of institutions, arising from the process of international economic integration.

Suggested Citation

  • Natalia Petrovna Ryzhova, 2013. "The Role of Institutions in International Economic Integration," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 72-88.
    • Handle: RePEc:far:spaeco:y:2013:i:1:p:72-88
    DOI: 10.14530/se.2013.1.072-088
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    Cited by:

    1. Minakir, P. & Prokapalo, O., 2018. "Far East Priority: Combinations of Investment and Institutes," Journal of the New Economic Association, New Economic Association, vol. 38(2), pages 146-155.

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