Economic integration is the establishment of a unified economic area where consumers and producers of different nations transact freely in a single market. Using the experience of the European Union, this essay offers a bird’sâ€“eye view of the trade–offs encountered when supranational structures pursuing collective objectives of integration may infringe on national sovereignty. The range of issues examined include: (A) Determination of policy with multiple veto players. (B) The advantage and disadvantages from centralising policy making. (C) The welfare effects of a customs union from changing the flows of trade and factors of production across different countries. (D) The costs and benefits from adopting a single currency and its consequences for budgetary policy.
- Artis M, Nixson F (2007) Economics of the European Union, 4th edn. Oxford University Press, OxfordGoogle Scholar
- Baldwin R, Wyplosz C (2012) The economics of European integration, 4th edn. McGraw Hill, MaidenheadGoogle Scholar
- De Grauwe P (2012) The economics of Monetary union, 7th edn. Oxford University Press, OxfordGoogle Scholar
- For annual scholarly updates on EU developments the reader is referred to the Supplement of the Journal of Common Market Studies, an academic publication dedicated to EU issues, The interested reader may also consult the EU website: http://europa.eu/index_en.htm (in English)
- Saurugger S (2013) Theoretical approaches to European integration. Palgrave Macmillan, BasingstokeGoogle Scholar
- Senior Nello S (2011) The European Union: economics, policies and history, 3rd edn. McGraw Hill, MaidenheadGoogle Scholar
- The stock of scholarly work on the economic, political and legal aspects of European integration is enormous and, in view of the fast pace of the changes recent change, expanding rapidly. The following list is only a small sample of some of the most popular textsGoogle Scholar