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Costs and Benefits of Economic Integration in Asia$
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Robert J. Barro and Jong-Wha Lee

Print publication date: 2011

Print ISBN-13: 9780199753987

Published to Oxford Scholarship Online: September 2011

DOI: 10.1093/acprof:oso/9780199753987.001.0001

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Economic Integration in Remote Resource-Rich Regions

Economic Integration in Remote Resource-Rich Regions

Chapter:
(p.187) 7 Economic Integration in Remote Resource-Rich Regions
Source:
Costs and Benefits of Economic Integration in Asia
Author(s):

Anthony J. Venables

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199753987.003.0007

What are the effects of regional integration and other trade policy measures in regions such as Central Asia or the Great Lakes Region of Africa where countries are remote with poor access to the outside world and where foreign exchange earnings come largely from natural resource based exports? The chapter shows that if countries have unequal natural resource endowments, then the gains from non-preferential trade liberalization accrue largely to the more resource-rich economies, while the opposite is true for regional integration. Regional integration is a powerful way to spread the benefits of resource wealth more widely, but may also be an obstacle to external trade liberalization.

Keywords:   regional integration, natural resources, landlocked, Central Asia, trade, tariffs, oil, terms of trade

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