Progressive integration has been one of the most characteristic aspects of economic development in the last few decades. Many scholars believe that the international system as we see it today, is characterised by interconnectedness and interdependence which is driven by capital flows, technology, investment patterns, growing linkages between societies and more rapid dissemination of ideas. Indeed, while globalisation itself can be seen as a form of integration with the increasing interdependence amongst nations, the most notable trend in the global economy has been the accelerated movement to counteract the effects of the phenomena or resist these global pressures by way of regional economic integration. The acceleration of this form of internationalisation of the world economy in the 1990’s has profound implications for the political and the economic order at the international, regional and the national levels. Thus, the authors attempt to analyse the factors that initiate the process of regional economic integration and carry it forward.

Prepared as Term Paper for Regional Integration by Bardhi, Fleura and Kumar, Pooja (Norwegian School of Management). Awarded a grade point average of 3.7