Working Paper

Lessons from the United States and European Community for the integration of high and low income economies


Abstract: This paper draws on the experiences of the United States and European Community to speculate on the effects of agreements to integrate high and low income economies. The evidence suggests that reducing barriers to the flow of goods or resources will promote convergence, even among integrating countries with disparate incomes. Convergence may be slow, however, even when impediments to integration are significantly lowered. Institutional constraints can have substantial influence on economic growth and convergence, and the nature and effects of integration agreements will depend on the institutional environment in which they operate.

Keywords: European Economic Community; Economic development;

Status: Published in International Business in the New Millenium, Volume III: International Capital Markets and Economic Integration. Laredo, TX; Texas A&M International University, 1997, pp. 777-96.

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 1995

Number: 1995-007