Economic integration and economic globalization by fdjerue7eeu

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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 "resistance" 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'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, "according to international practice"
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'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 "special nature" 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 "ownership
advantages" and "internalization advantages," 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 & 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 "lose-lose." 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'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'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, "totalitarian" 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'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'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'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        "manufacturing"              rather        than
"creation" 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'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'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'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's economic development.

								
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