A Theoretical Perspective on Segmentation and Integration in International Trade

This study provides a theoretical perspective on partial economic integration, where integration and segmentation of countries coexist in the global economy. Drawing on the author’s research, this study summarizes the key factors of partial economic integration. These factors include policy-related factors such as regional trade agreements, rules of origin, and service trade barriers. They also include global shocks such as the Covid-19 pandemic, alongside firm-level behaviors, such as partial cross-ownership and international price discrimination. It elaborates on the author’s two recent studies related to partial economic integration, sector exclusions in free trade agreements (Mukunoki and Yildiz, 2025), and partial cross-ownership (Ghosh and Mukunoki, 2025). These insights highlight the need for government policies and international cooperation to address both the integration and segmentation forces in international trade.