ABSTRACT
This chapter examines the advantages of regional economic integration with the purpose of discovering which of them largely depend upon national development planning and which do not. It considers the different conclusions which are to be drawn if the scene is shifted from the more developed to the less developed countries of the world. Tibor Scitov-sky's treatment of the general theoretical presumptions as to the gains of integration is followed. The effects of regional economic integration are considered upon employment and upon productivity. The productivity is approached under: methods of production, allocation of production and resources among producers, and the direction of investment. The chapter considers each of these subjects, with particular reference to less developed areas. It explores the European Common Market and trade between the U. S. S. R. and some of its more industrial neighbors. The chapter details the LAFTA and Central American tariff unions, and certain other organizations proposed for Asia and Africa.
