Abstract

This thesis studies the relationship between regional characteristics and integration schemes. I undertake a causality probe to examine the relationship between state-business relations , regional hegemon , level of trade and role of business ; and level of institutionalization and economic benefits . The main question addressed by this thesis is what explains the variance in levels of integration between regions. Hence, the research questions are: (a) what are the variables that determine the level of institutionalization of a given regional integration? and (b) what are those required for it to be a success and provide a high level of economic benefits? I examine the cases of the European Union and the Association of Southeast Asian Nations (ASEAN) in their two most recent forms. European integration is found to be an example of successful and deep level of integration, whereas ASEAN has taken only tentative steps towards increasing its cooperation. The state-business relations and political will of the leaders of the scheme, either a hegemon or k-group, is found to be a dominant factor in determining the level of integration achievable in a region. Furthermore, both schemes succeeded in overcoming their security concerns and establishing economic integration schemes, thereby suggesting that regime variance does not preclude successful integration. The effect that it does have seems to rest in the speed with which a preferential trade agreement (PTA) can overcome its security concerns, in order to focus on economic benefits.