ABSTRACT

This chapter examines the concept of national economic integration (NEI) as an appropriate structural perspective on economic development and analyses the Korean experience since the early 1960s from this perspective. International economic integration may be synonymous with development in advanced countries, particularly in Europe, where integration at the international level is accelerating. The concept of "economic integration" is usually identified with "international economic integration," often to the exclusion of the national level. The national economy is generally accepted as a basic unit of economic analysis, and even international economic analysis regards national economies as units of analysis. The significance of national economic integration for economic development in general is drawn by rejecting the assumption that the existence of nation states automatically brings internal integration within a national economy, which in turn obstructs international economic integration, and therefore development. National economic integration can be studied through the interconnectedness among economic sectors and activities.