Static effects of regional economic integration are found more in terms of production
efficiency and consumer welfare. Firstly, static welfare effects can be observed when tariff
barriers of member countries of a trade bloc are lowered.
The dynamic effects which have an influence on member countries’ long‐term
growth rates. These include gains which, according to the theory of optimum currency, are
to be had from sharing a currency across countries’ borders (Carbaugh 2004). These gains
When managed successfully, infrastructure investment can have a positive impact on
economic development, which is invariably measured through economic growth, output,
The CARICOM Single Market and Economy (CSME) An economic principle in which private investment increases as debt-financed government spending increases. This is caused by government spending boosting the demand for goods, which in turn increases private demand for new output sources, such as factories
Crowding out refers to when government must finance its spending with taxes and/or with deficit spending, leaving businesses with less money and effectively "crowding them out." One explanation of why crowding out occurs is government financing of projects with deficit spending through the use of borrowed money. Because the government borrows such large amounts of capital, its activities can increase interest rates. Higher interest rates discourage individuals and businesses from borrowing money, which reduces their spending and investment activities.
In the Grande Anse Declaration and Work Programme for the Advancement of the Integration Movement, Heads of Government expressed their determination to work toward establishing a single market and economy.
The CARICOM Single Market and Economy is intended to benefit the people of the Region by providing more and better opportunities to produce and sell our goods and services and to attract investment. It will create one...