Abstract

An article provides a new insight to the modelling of the dynamics of international economic integration using qualitative properties of an oscillation theory. Proposed method of computing the GDP after economic integration enables to compute the benefits of economic integration for member states on the union: one needs to know the rates of domestic savings, amplitudes and frequencies of the cycles of the value added of sectors for united countries / regions. A new vision of the dynamics of economic integration proposed in the article is similar to unification of water basins previously separated by sluices, in which the waves of the value added generated by economic entities, interact with each other. It was analytically proved that economic integration causes growth of the GDP of unified states.

Keywords: The dynamics of international economic integration, oscillation theory; value added of sectors, GDP, domestic savings rate.