This paper is a literature survey on the occurrence of world economic integration and its implications for the economic growth of developing countries. Almost all empirical results show a positive relationship between world economic integration and economic growth. The more open an economy is, the higher the level of economic growth. However, economic integration also makes a country increasingly vulnerable to external shocks. It was found that the completeness of market institutions and their implementation is very helpful not only to accelerate a country's ability to take advantage of world integration but also to provide better protection in the face of shocks.
Jakarta, March 2004
Mohamad Ikhsan
