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Economic integration and economic globalization On regional economic integration and discusses the relationship between economic globalization, mostly starting from the economic representation that they are both opposite and unified relationship with each other. The author from the perspective of new institutional economics, trying to reveal: (1) Regional economic integration and economic globalization, the market system because of the inherent defects are a result of the institutional change process, so in essence they are the same ; (2) What is different is the way the system changes. The former is by regional governments played a leading role in the body of mandatory changes, which mainly seeks profit by the market of the main motives for the induced self-driven change; (3) Based on this, the performance of the regional economic integration as the basis of national contracts set up an international economic cooperation organization, it is the sovereign state as the core, in the pursuit of the efficiency of the market economy as much as possible while giving consideration to fairness. While economic globalization Ze yes spontaneous acts of one kind market, sovereign Guo Jia Bei out of economic Quanqiu Hua Zhi Wai, Qi Zhong Xiaolvyouxian De Yuanze 得到 fully incorporated but Gongping Quenan Yi balance, resulting in developed and developing economies Fazhan the impact of the formation of asymmetric effects. Specifically described as follows: First, the consistency between the two: market failures caused by system changes For the Western neo-classical school of economics, the market can compete in the allocation of resources to maximize social welfare, and the division of labor can increase productivity, are two indispensable aspects of economics. They often assume that economic activity does not exist &quot;resistance&quot; that the market division of labor, the most effective coordination mechanism. This assumption excludes from the market failure caused by any potential profits. However, in reality, the market is incomplete, and or say that there were all kinds of market failure Xianxiang, so right through Zhiduo innovation to a more effective division of labor Hu Jiao Yi&#39;s Xietiao to become inevitably. Regional economic integration and economic globalization is to correct market failures in the system innovation process (institutional change). Market is not fully reflected in two aspects: one is structural distortions, it is a distortion caused by external forces. National market segmentation and the sovereign state policy adopted by different restrictions (tariff and non-tariff barriers), is the formation of such an important reason structural market failure. It is the existence of cross-border economic activities encountered many obstacles, to bear higher costs. Can be said that the first division of the world market is divided sovereignty. When the division of the development requirements of economic activity beyond the narrow scope of the domestic market, people gradually realized that in order to facilitate international transactions, &quot;according to international practice&quot; is necessary. However, in the absence of a supranational system of mandatory arrangements, according to international practice is difficult to be fully guaranteed. This is an international business activities in the root system of higher transaction costs. To address these issues, regional economic integration began. Regional integration is often seen as a kind of act of state or government action, in fact it is driven by business and civil society developed by the government acts to consolidate and deepen. It is divided into different levels according to preferential tariff zone, free trade area, customs union, common market, economic union, complete the six forms of economic integration. For example, the highest level of the EU are heading toward regional integration. In the British classical economists Adam Smith and David Ricardo&#39;s theory of absolute advantage and comparative advantage, an important theoretical foundation is assumed between elements can be completely replaced, or factors of production in the transition between the various sectors cost is zero. At that time under the conditions of social productive forces, this assumption perhaps some of the desirability, but the social productive forces of today, the modern international division of a major characteristic is the growing Jibenshiwu increasingly specialized elements of the Zhineng the sake of a dedicated assets (such as human capital and physical capital assets). The emergence of specific assets increased physical elements of the difficulty of substitution between each other, so that movement of production factors by cross-resistance is growing. This makes the establishment of the basis of the classical trade theory, international trade division of the form, into a deeper dilemma. The emergence of asset specificity, so that we can find that the smooth development of bilateral trade, the key, depending on factors of production in the ease of transfer between industries, or that implied in the transfer process depends on the cost of high and low. The above analysis tells us that the form of dedicated assets to achieve cross-border mobility of production factors, the international division of labor has opened up new sources of interest. On the one hand, it avoids the transfer of Dao-specific assets when other sectors to give up their original art by access to Di, experience Yiji conducted exclusively Touzi of value; on the other hand, also reduce the occasion Wei Ling Yi remodeling similar Zhuanyong assets and the investments. Therefore, under the conditions of the existing international division of labor, to increase productivity, enhance efficiency of resource allocation is important is that the factors of production from the &quot;special nature&quot; liberating constraints. From a technical point of view, modern transport, communications and information technology development in the flow of production factors have provided more favorable conditions; the other hand, the international market fragmentation of the policy differences between countries and other factors limit the the elements of the free movement of international scope. In the present circumstances, to achieve global harmonization of key markets is not possible, so as to regional integration, step by step manner to solve the unification of the market became a natural choice. Overall, the market caused by structural failure of any potential profits may lead to institutional change is the fundamental driving forces. These potential profits in the established conditions (such as tariff barriers and the elimination or reduction of non-tariff barriers, reduction of the international division of labor adjustment costs, etc.), and the potential profits only by marginal adjustments to the existing system is not possible, in order to find The new system of inter-country contractual arrangements (mandatory changes) to obtain the potential revenue, to be able to achieve regional economic integration an important reason. Another market is not complete performance failure of the market mechanism itself, namely the existence of transaction costs. Higher transaction costs, market management mechanism as a trading lower efficiency or even complete the transaction. Formed by the transaction costs and thus the market barriers. Here transaction costs is a broad concept, refers to the market from all the cost factors of uncertainty, especially information costs. Economic globalization is the market failure and structural failure of the market mechanism itself caused by the superposition of two-way potential profits resulting institutional change. But it is all market players (especially multinationals) spontaneous behavior in seeks profit motive driven, as the induced changes. Embodied in: Transnational Corporations use their &quot;ownership advantages&quot; and &quot;internalization advantages,&quot; the border with the enterprise boundary alternative markets, worldwide simultaneously eliminate the transaction costs of goods and capital, two-way arbitrage. This is because multinational corporations can be the most advantageous location according to the distribution company to arrange the production and sales activities, so that each branch Jiqi the associated companies of functional specialization in the case of integration into a unified network to spread the throughout the production, marketing and r &amp; d and other services in the parent, reducing market barriers and obstacles of all kinds of interference on the arbitrage process. At the same time, accelerating change 信息 technology enables remote control of the information cost significant decline, so that theoretically speaking, there is capacity for a global expansion of enterprises, 它 range of activities can be achieved anywhere in the world. Therefore, the micro-economic entities, especially multinational corporations market distortions caused by the potential for pursuing the profit motive, to promote economic globalization makes the world economic system is taking shape. Second, the two inconsistencies: System Changes and Their Effects From the analysis above, we have clear understanding of regional economic integration and economic globalization are two different forms of institutional change: the former is mainly Forced Change, which can be regarded as the induced changes. System Changes in the system of the different effects produced by different nature, that is, even though regional integration can be regarded as an intermediate process of economic globalization, but they have very different consequences. Regional integration in the pursuit of economic cooperation between countries, but also penetrated the political factors (national interests). The introduction of the idea of game theory, we know that regional integration can mean: after deducting the costs of negotiation cooperative game solution reached equilibrium interest superior to non-cooperative game. But the cooperation equilibrium is unstable, no one has to break the equilibrium and the pursuit of maximizing short-term interests of the motivation, though ultimately lead to the &quot;lose-lose.&quot; Therefore, in order to maintain constant cooperation and coordination is essential. Coordination and negotiation in the process, efficiency and equity were both. With this difference, economic globalization is a spontaneous market behavior, which from personal Dao in the world market did not Zuoweiquyu the core elements of economic integration Zhi state from 这个 sense speaking, economic globalization is an ultra Zhu Quan&#39;s Gainian . The role of market discipline can only be a result of efficiency first, but hardly a fair balance. From this result, on the one hand is the world&#39;s resources quickly and effectively within the global configuration, on the other hand is the economic development of countries in the world the impact of non-symmetrical effects: whole, conducive to a stronger Dewei the Fadaguojia Erbu help in a weak position of developing countries. Performance highlighted three points: (1) in the world economy, &quot;totalitarian&quot; effects (wealth redistribution effect). Whether the financial investment or commodity production, marketing, globalization mean that the decision-making power over to the ultra-large-scale multinational companies, international banks, hedge funds and mutual funds in global economic activities of enterprises and institutions. This has contributed to the world economy and regional economy affiliated with multinational corporations, multinational banks and various fund the highest profits in the global needs of the negative consequences, on the other hand because of multinational corporations, multinational banks and various fund is mainly owned by developed capital Marxist state, which inevitably lead to the world&#39;s wealth between developed and developing countries in the unfair distribution. (2) Effect of overproduction in the world economy. From the supply side, economic globalization makes more and more low-cost manufactured goods of developing countries into the production of traditional ranks, resulting in a sharp increase in supply of such products; From the demand side as the world economy officially entered the era of information economy, people falling demand for traditional products, the income elasticity has shown a decreasing trend. Result, the traditional elements of manufactured goods, especially those of labor-intensive manufactured goods, inevitably the effects of global overproduction. Deteriorating terms of trade of developing countries, resulting loss of trade benefits, weak economic growth. (3) in the world economy deflation effect. Deflationary effects of the global economy is rooted in the economic globalization process the world&#39;s total supply and total demand of non-symmetry change. For example, when China and the former Soviet Union countries such as the planned economic system through economic transformation into the world economy, the total demand while the world may increase, but the world&#39;s total supply will increase faster. This is because the planned economy of these countries is only produced in the domestic residents, while the international division of labor 体系 之后 Dangjin Ru, Ta Men produced the world for Zheng Ge, thus Qi Gong Ji Biran Hui Sui Zhao Di liberation of productive forces and Zeng Jia. With the increase in total world supply, prices will fall, inflation will subsequently shrink. However, here, we need to distinguish between two different deflationary effect: One is the relative increase in Er Yin Qi on supply of currency contraction, 它 was one of those O.K. currency contraction occurred in developed countries; the other is due to the relative decline in demand caused by deflation, it is kind of bad deflation, in developing countries. That is, with economic globalization comes deflation, the coexistence of two types of good and bad, and their nature in different countries are not the same. As a new source of U.S. economy, caused by the new economy in the nature of deflation is good. This is because: the decline in U.S. prices is not because of income and demand fall, but from the new economy brought by the U.S. productivity and international competitiveness improvement, output increase, Jiashangshijie market steady stream of traditional products constant caused by low supply. Decreasing the cost of the new economy (increasing returns) effects, combined with Wall Street stock market wealth effect, making the real income of Americans increased substantially. Further contrast, those who have not keep up with the pace of economic development in new countries, particularly East Asia, such as the newly industrialized countries, the emergence of bad deflation. This is because: in the economic globalization and the new two-way economic impact, these are still interested in &quot;manufacturing&quot; rather than &quot;creation&quot; of the country, almost entirely lost its international competitiveness, the subsequent fall in exports and current account The trade deficit makes the fundamentals of the economy has changed fundamentally. All of these have made it into the areas of these countries to international capital and the actual earnings and expected earnings has a huge contrast, therefore, to avoid risks, international capital have retreated from these countries and regions. This result is naturally shrinking assets, cash flow shortage and high price index dropped sharply. This decline in aggregate demand from the world caused by deflation, is clearly a bad deflation. 3, Conclusions and Implications In summary, from the perspective of new institutional economics, we have concluded that: regional economic integration and economic globalization are essentially within the market system, the system changes caused by defects. However, changes in the system, there are differences in approach inevitably leads to different system effects. In today&#39;s world economy, regional economic integration and economic globalization, their different effects of institutional change can be perfect verification. In addition, in reality, the regional economic integration and economic globalization coexist, most have involved changes to both systems being. The different is that the regional economic integration, in theory a country there is a relatively autonomous Xuanze right, Ji Ke Yi reached in through the Qi Yue between countries to promote regional integration process (Jiang Zhixing change). It depends on a country&#39;s potential profits and reality in the cost (including the negotiation of fees) the trade-off between. Here, the initial development level of countries the degree of convergence Xiande 十分 critical, because that will determine whether countries can achieve economic future through the effective integration of Er economic benefits, but also decided that States can quickly reach a consensus and Xiangditanpan costs. However, similarities and differences between countries they are constrained by the level of development from economic, political, cultural, and geographic location, and many other factors. It is also based on this, the regional economic integration is always a high degree of convergence in which many countries and regions such as Western Europe, Latin America and Southeast Asia and so on. In contrast, economic globalization is difficult to control the market of a country the process of spontaneous behavior (the system of induced changes). The main micro-economic objective of maximizing the benefits driven, the elements in the worldwide allocation of resources for production and trade. Accelerate the transformation of information technology also aims to provide a solid material guarantee. However, an inevitable negative consequences that impact the world of non-symmetrical effect and the increasing polarization. The resulting reality of thinking is: a country in the objective necessity of the economic globalization process and how to reduce the adverse impact of more interest? The only way is to upgrade the country&#39;s international competitiveness. And as the basic principles of international economics, and numerous practical experience have shown to enhance the international competitiveness is only through comparative advantage (of its basic premise is to reduce the cost of operation of the market) can be achieved. Thus, economic globalization, institutional change, taking a favorable growth of comparative advantages to play their own path, has become an inevitable choice for China&#39;s economic development.
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