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ECONOMIC ESSENCE AND ANALYSIS OF INTERNATIONAL AND REGIONAL
ECONOMIC INTEGRATION PROCESSES
Marjona Gulmurodova
Tashkent State University of Economics
Student of the Faculty of “Finance”.
Marjona Abdurakhmonova
Tashkent State University of Economics
Student of the Faculty of “Banking”.
Umida Yuldasheva
Scientific Advisor, Tashkent State University of Economics
Professor of the Department of “International Finance”, DSc.
ABSTRACT:
In this article, it presents two main manifestations of integration processes in
international economic relations, manifested at the micro and macro levels. At the micro level,
this process is explained by the fact that individual firms in neighboring countries establish
various forms of economic relations, as well as by establishing their branches in foreign
countries. The rapid development of relations between firms and production enterprises, the
provision of services in the exchange of goods, the free movement of capital and labor between
countries necessitates the need for interstate regulation aimed at ensuring a single policy of
economic, social, scientific and technical, foreign economic and defense policies, and actions in
the financial and monetary sphere. As a result, economic complexes with a single currency,
infrastructure, financial funds, common interstate management bodies are formed, and a number
of proposals and conclusions are given for the development of international economic integration
processes.
KEY WORDS:
Integration, export, import, capital, labor, financial funds, foreign trade, trade
balance, balance.
INTRODUCTION.
International economic integration is the economic, socio-political and cultural unification of
countries, which arose on the basis of the development of stable relations between national
economies and the division of labor, and reflects the interconnectedness of production structures
to various degrees and in various forms.
The following goals are envisaged for the territorial integration of countries:
1. Reducing production costs by using the opportunities for expanding markets and increasing
the scale of production;
2. Further developing cooperation between countries;
3. Increasing the position of countries participating in international economic integration
processes in the world market.
The peak of international economic integration associations dates back to the achievements of
the development of Western European economic integration. This trend has attracted the
attention of developing regions of the world. As a result, several dozen free trade areas, customs
or economic unions have emerged in Asia, Africa and Latin America. The achievements of the
development of economic integration in Western Europe have attracted the attention of
developing regions of the world. Several dozen free trade areas, customs or economic unions
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have emerged in Asia, Africa and Latin America. The establishment and operation of the North
American Free Trade Association (NAFTA) have played a significant role in the significant
development of integration processes. This integration area occupies a high place in terms of
economic importance in the world economy and international economic relations. In 1992, an
agreement was signed between the United States, Canada, and Mexico to establish the North
American Free Trade Association (NAFTA), which began operating on January 1, 1994.
NAFTA unites the United States, Canada and Mexico. This integration association covers a vast
territory with a population of 456.6 million and has strong economic potential. The annual
production of goods and services in these countries is 7 trillion US dollars. Their share in world
trade is about 20%. The agreement of the NAFTA countries mainly provides for the removal of
restrictions on trade in goods and services, the development of mechanisms for resolving
disputes, and the liberalization of the investment climate in relation to each other. A distinctive
feature of NAFTA in relation to the EU is the asymmetric nature of the integration processes.
Canada and Mexico seek to become closer to the United States in the process of integration, but
are weakly connected to each other.
LITERATURE REVIEW ON THE TOPIC.
M. Fujita, A. Niebuhr, and S. Stiller conducted scientific research on the characteristics of the
development of international economic activity and its development trends, justifying the
advantages of international economic integration and the directions of liberalization of foreign
economic activity. Helpman, J. Tinbergen, A. Bernard and T. Mayer, A. Cusolito developed
modern models of international trade, studying the trends and main features of the development
of international trade, the relationship between the country's export competitiveness in
international trade and intensive and extensive borders. E. Zvonova, A. Kuznetsov, L. Revenko
conducted research on global imbalances in the development of foreign trade relations and their
regulation, as well as on eliminating various obstacles affecting the development of foreign trade
[1].
RESEARCH METHODOLOGY.
This article uses the methods of analysis and synthesis, scientific abstraction, generalization,
comparative theoretical interpretation. In addition, the scientific basis of the article is
international data obtained from the research of scientists in local and foreign scientific
publications.
ANALYSIS AND RESULTS.
Given the sharp increase in exports in the first two years, NAFTA's performance in terms of
creating additional jobs did not fully justify the hopes. In addition, the positive trade balance
between the United States and Mexico disappeared, and in 1995 it was replaced by a deficit. In
the end, according to the plan of the creators of NAFTA, it was considered possible to create a
fully-fledged North American common market by 2010. Currently, American economists are
developing a model for creating a sufficiently powerful American trading bloc. In the mid-90s,
integration processes in Latin American countries intensified. Based on the agreement between
Brazil, Argentina, Paraguay and Uruguay, concluded in 1991 and entered into force on January
1, 1995, a large regional trade and economic union MERCOSUR (Mercado Comun de Cono del
Sur – MERCOSUR) was created, bringing these countries closer together (since July 2006,
Venezuela has also been admitted to membership). In this, all restrictive payments were removed
in almost 90% of mutual trade relations and a single customs tariff was established in relations
with third countries. The goal of MERCOSUR is to form a common market in the region.
MERCOSUR has an indispensable system for coordinating and managing integration processes.
It includes the Common Market Council under the Ministry of Foreign Affairs, the Common
Market Group – the executive div, and 10 technical commissions subordinate to it.
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MERKOSURning
faoliyati
unga
kiruvchi
mamlakatlar
iqtisodiyoti
rivojlanishini
barqarorlashtirishga, shu jumladan inflyatsiyani jilovlashga va ishlab chiqarishni
rag‘batlantirishga yordam beradi. Shu bilan birgalikda valyutani tartibga solish, soliqqa tortishni
unifikatsiya qilish hamda mehnat qonunchiligida bir qator hal qilinmagan muammolar
The
activities of MERCOSUR contribute to the stabilization of the economic development of its
member countries, including curbing inflation and stimulating production. At the same time,
there are a number of unresolved issues in currency regulation, unification of taxation, and labor
legislation. As another example, we can cite our country's foreign trade for the period 2018–
2022. (Table 1) As can be seen from the table, our country's foreign trade turnover is growing
year by year. As another example, we can cite our country's foreign trade for the period 2018-
2022. (Table 1) As can be seen from the table, our country's foreign trade turnover is growing
year by year. However, the issue that concerns us to this day is how to bring the trade balance
from a negative level to a positive level. If we look at the period 2018-2022, the volume of
exports is significantly higher than imports. The trade balance is also becoming negative. Our
research scientists are working on this issue and are making their suggestions and
recommendations, but this issue still remains open.
1-Jadval
Foreign trade of the Republic of Uzbekistan[2].
Indicators
2018
2019
2020
2021
2022
Mln.$.
Foreign trade balance
33 429,9
41 751,0 36 256,1 42 170,5 50 061,5
Export
13 990,7
17 458,7 15 102,3 16 662,8 19 293,7
Import
19 439,2
24 292,3 21 153,8 25 507,7 30 767,8
Trade balance
-5 448,5
-6 833,6
-6 051,5
-8 844,9
-11 474,0
including:
with CIS countries.
12 144,4
14 461,8 11 826,4 15 920,4 19 954,8
Export
5 003,1
6 234,0
4 106,4
5 433,8
7 867,0
Import
7 141,3
8 227,8
7 720,0
10 486,6 12 087,7
-2 138,2
-1 993,8
-3 613,6
-5 052,8
-4 220,7
With other countries
21 285,5
27 289,2 24 429,6 26 250,1 30 106,7
Export
8 987,6
11 224,7 10 995,8 11 229,0 11 426,7
Import
12 297,9
16 064,5 13 433,8 15 021,1 18 680,0
Trade balance
-3 310,3
-4 839,9
-2 437,9
-3 792,1
-7 253,4
Compared to the previous year,
in%:
Foreign trade turnover
125,8
124,9
86,8
116,3
118,7
Export
111,4
124,8
86,5
110,3
115,8
Import
138,7
125,0
87,1
120,6
120,6
including:With CIS countries
133,7
119,1
81,8
134,6
125,3
Export
122,6
124,6
65,9
132,3
144,8
Import
142,7
115,2
93,8
135,8
115,3
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With other countries
121,8
128,2
89,5
107,5
114,7
Export
106,1
124,9
98,0
102,1
101,8
Import
136,5
130,6
83,6
111,8
124,4
The establishment of MERCOSUR led to a sharp increase in mutual trade and the expansion of
trade and economic cooperation with other regional trading groups. Mutual investment activity
also increased significantly, resulting in an acceleration of foreign investment flows. The positive
activity of MERCOSUR was reflected in its significant impact on political stability in the region.
Unlike Western European integration, the South American Union was not only a single
organization of countries of different levels, but also effective cooperation. This required diligent
preparation for all stages of the union, highly qualified management of its activities, as well as
high skills for each country to find its place in this process and mitigate conflicts. At the end of
the 20th century, integration processes in East Asia intensified. The Association of Southeast
Asian Nations (ASEAN), which includes Singapore, one of the four Asian "dragons", as well as
the "new wave" NIS countries - Malaysia, Indonesia, Thailand, Brunei, Vietnam, Cambodia,
Laos, Myanmar and the Philippines, has been successfully operating. The successful cooperation
within these groups is closely linked to the strong economic growth of most ASEAN member
countries, as well as the well-established trade relations between these countries and the
functioning of a regulated form of cooperation. ASEAN was established in 1967 with the signing
of the ASEAN Declaration in Bangkok.
ASEAN was formally formalized in 1976 on the basis of the ASEAN Declaration of
Understanding and the Treaty of Amity and Cooperation in Southeast Asia, signed in Bali. The
ASEAN plan provided for the member countries to reduce customs duties on 38,000 types of
goods by an average of 5% by 2000. At the end of 1995, a decision was made to establish a full
free trade area from 2003, which was expected to come into force in 2000 if the positive
development of events continued. ASEAN is a political, economic and cultural regional
intergovernmental organization of countries located in Southeast Asia. The highest div of
ASEAN is the annual summit of the leaders of the member states, which has been held since
2001. The summit usually lasts three days, during which meetings are held with the
organization's partners in the region. The Permanent Secretariat is based in Jakarta and is headed
by a Secretary-General. It also has 29 committees and 122 working groups that help organize
more than 300 ASEAN events each year.
The Asia Pacific Economic Corporation (APEC) was founded in Canberra in 1989 at the
initiative of the Prime Ministers of Australia and New Zealand. APEC was established as a free
consultative forum, devoid of rigid organizational structures or large bureaucratic apparatus, and
is therefore often referred to as the “APEC Forum”. The APEC Secretariat is based in Singapore
and consists of 23 diplomats representing only APEC member countries, as well as 20 local staff.
The prospects for the development of economic integration in East Asia are significantly linked
to the establishment of the Asia-Pacific Economic Cooperation (APEC). The Asia-Pacific
Economic Cooperation (APEC) is an intergovernmental organization that brings together 21
countries from the region. APEC was established in 1989 at the initiative of Australia to develop
economic cooperation in the Pacific Rim. Initially, it included 12 countries: Australia, Brunei,
Canada, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea,
Thailand and the United States. Over the years, China, Hong Kong, Taiwan, Mexico, Chile,
Papua New Guinea joined it, and since 1998, Vietnam, Peru and Russia. APEC has the right to
formally advise on investment and financial activities, but within its working bodies, a procedure
for conducting regional trade is established, during which meetings of sectoral ministers and
experts are held on issues of cooperation between one or another region.
APEC is a large economic association, which, according to 2007 data, accounts for 57% of world
GDP and more than 48% of world trade. The main goal of the organization is to ensure a free
and open economic order and strengthen regional cooperation. In 1994, the establishment of free
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and open trade systems and a liberal investment regime in the Asia-Pacific region by 2020 was
officially announced as a strategic goal. Somewhat developed countries should implement
liberalization from 2010. Each country independently determines the timing of the introduction
of new procedures and its own rights based on individual plans for its activities. Assessing the
processes of economic integration in the Asia-Pacific region, many experts emphasize the
uniqueness of its development and the presence of special conditions. The main features of the
integration processes in the Asia-Pacific region include the following:
Firstly, the integration processes in APEC are carried out through the leadership of TNCs that
create the basis for interstate cooperation. In particular, the emergence of non-governmental
regional economic organizations - the Pacific Economic Cooperation (PES) in 1967 and the
Pacific Economic Cooperation (PECC) in 1980 - created a very favorable environment for the
creation of APEC. At the same time, PES and PECC were formed on the basis of national
committees that had strong ties with their governments and received comprehensive support
from them.
Secondly, the integration processes covered countries with different levels of economic
development. The unique role of APEC was that it included the two largest economic powers of
the 20th century, the USA and Japan, and at the same time, the economically powerful state of
the 21st century, China.
Third, integration within the Asia-Pacific region includes subregional economic alliances
(ASEAN, NAFTA, South Pacific Forum, etc.).
CONCLUSION.
World economic integration is a process of economic and political unification of countries based
on the development of deep stable relations between national economies and the division of
labor, the interaction of economies at various levels and forms. International economic
integration reflects the interconnectedness of production and reproduction processes at various
levels. World economic integration is the interconnection of national economies and is an
objective process of conducting economic policy between countries that have agreed to form this
integration unit. Countries participating in world economic integration have a number of
advantages in the process of conducting foreign economic relations, and the desire to form
integration units in order to achieve these interests is the driving force of integration.
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