IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v18y2025i2p56-d1577557.html
   My bibliography  Save this article

The Global Integration Dilemma: Functionalist Efficient Stability Versus Geoeconomic Vulnerability Risks

Author

Listed:
  • Paul Dragos Aligica

    (Mercatus Center, George Mason University, Fairfax, VA 22030, USA
    Department of Administrative Sciences, University of Bucharest, 030018 București, Romania)

  • Robert Gabriel Ciobanu

    (Department of Administrative Sciences, University of Bucharest, 030018 București, Romania)

Abstract

This article explores the complex trade-offs involved in global economic integration. While economic integration, through mechanisms such as customs unions, promotes efficiency, trade, and cooperation, it also introduces significant vulnerabilities, particularly in the context of geoeconomics and weaponized interdependence. Drawing on the theories of Jacob Viner and David Mitrany, this paper illustrates how functionalist economic stability and efficiency are essential but must be balanced with considerations of resilience and security. Case studies such as the COVID-19 pandemic and Europe’s reliance on Russian gas during the Ukraine war highlight the risks of overdependence in interconnected global systems. Ultimately, this paper argues for a nuanced approach that balances economic benefits with the geopolitical risks of interdependence, advocating for a mixed framework that integrates both efficiency and stability.

Suggested Citation

  • Paul Dragos Aligica & Robert Gabriel Ciobanu, 2025. "The Global Integration Dilemma: Functionalist Efficient Stability Versus Geoeconomic Vulnerability Risks," JRFM, MDPI, vol. 18(2), pages 1-16, January.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:56-:d:1577557
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/18/2/56/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/18/2/56/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rebecca Freeman & Richard Baldwin, 2022. "Risks and Global Supply Chains: What We Know and What We Need to Know," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 153-180, August.
    2. Paul J. McNulty, 1968. "Economic Theory and the Meaning of Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(4), pages 639-656.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    2. d'Artis Kancs, 2024. "Uncertainty of supply chains: Risk and ambiguity," The World Economy, Wiley Blackwell, vol. 47(5), pages 2009-2033, May.
    3. Tine Buyl & Thomas Gehrig & Jonas Schreyögg & Andreas Wieland, 2022. "Resilience: A Critical Appraisal of the State of Research for Business and Society," Schmalenbach Journal of Business Research, Springer, vol. 74(4), pages 453-463, December.
    4. Francois de Soyres & Ana Maria Santacreu & Henry L. Young, 2023. "Demand-Supply Imbalance during the COVID-19 Pandemic: The Role of Fiscal Policy," Review, Federal Reserve Bank of St. Louis, vol. 105(1), pages 21-50, January.
    5. Taiji Furusawa & Lili Yan Ing, . "G20’s Roles in Improving the Resilience of Supply Chains," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Nicholas Bamegne Nambie & Philomena Dadzie & Dorcas Oye Haywood-Dadzie, 2023. "Measuring the Effect of Income Inequality, Financial Inclusion, Investment, and Unemployment, on Economic Growth in Africa: A Moderating Role of Digital Financial Technology," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 111-124, July.
    7. Caravella, Serenella & Crespi, Francesco & Cucignatto, Giacomo & Guarascio, Dario, 2023. "Technological Sovereignty and Strategic Dependencies: The case of the Photovoltaic Supply Chain," GLO Discussion Paper Series 1330, Global Labor Organization (GLO).
    8. Gloria Allione & Claire Giordano, 2023. "Are the Happy Few still happy? Exporter heterogeneity during the COVID-19 pandemic in Italy," Questioni di Economia e Finanza (Occasional Papers) 816, Bank of Italy, Economic Research and International Relations Area.
    9. Octavian-Dragomir Jora & Gheorghe Hurduzeu & Mihaela Iacob & Georgiana-Camelia Cre?an, 2017. "“Dialectical Contradictions” in the Neoclassical Theory and Policy Regarding Market Competition: The Consumer and His Continuos Burden of Crisis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(45), pages 544-544, May.
    10. Lijing Shang & Saiful Aman & Abdulkhabir Rahmat, 2025. "An Evaluation to the Global Supply Chain Security Evidence from China’s High-End Manufacturing Sector," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 2204-2221, January.
    11. Hirofumi OKOSHI & Hiroshi MUKUNOKI, 2024. "Keep Your Friends Close and Your Enemies Closer: Network externality and tax competition," Discussion papers 24024, Research Institute of Economy, Trade and Industry (RIETI).
    12. Byrne, Shane & Devine, Kenneth & King, Michael & McCarthy, Yvonne & Palmer, Christopher, 2023. "The Last Mile of Monetary Policy: Inattention, Reminders, and the Refinancing Channel," Research Technical Papers 6/RT/23, Central Bank of Ireland.
    13. Richard Baldwin & Rebecca Freeman & Angelos Theodorakopoulos, 2023. "Hidden Exposure: Measuring US Supply Chain Reliance," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 54(2 (Fall)), pages 79-167.
    14. Colin von Negenborn, 2023. "The more the merrier? On the optimality of market size restrictions," Review of Economic Design, Springer;Society for Economic Design, vol. 27(3), pages 603-634, September.
    15. Stephen Martin, 2012. "Market Structure and Market Performance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(2), pages 87-108, March.
    16. Jack High, 1984. "Bork'S Paradox: Static Vs. Dynamic Efficiency In Antitrust Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 3(2), pages 21-34, December.
    17. Cook, Paul, 2002. "Competition Policy, Market Power and Collusion in Developing Countries," Centre on Regulation and Competition (CRC) Working papers 30681, University of Manchester, Institute for Development Policy and Management (IDPM).
    18. Kozo Kiyota, 2023. "The COVID-19 Pandemic and World Machinery Trade Network," Working Papers DP-2023-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    19. Ardelean, Adina & León-Ledesma, Miguel & Puzzello, Laura, 2024. "Growth volatility and trade: Market diversification vs. production specialization," Journal of Economic Behavior & Organization, Elsevier, vol. 225(C), pages 252-271.
    20. repec:hal:spmain:info:hdl:2441/6520 is not listed on IDEAS
    21. Efrem Castelnuovo, 2022. "Uncertainty Before and During COVID-19: A Survey," "Marco Fanno" Working Papers 0279, Dipartimento di Scienze Economiche "Marco Fanno".

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:56-:d:1577557. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.