Limiting Integration: Transnational Exchanges and Demands in the BSEC Area

Abstract

This paper focuses on the evolution of the Black Sea Economic Cooperation (BSEC) as a regional economic organisation and a type of regional governance as influenced by the level and direction of transnational exchange and demand. The analysis is based on empirical data available for the first decade of the BSEC activities. As indicators of transnational exchange, we use the volume of intra-BSEC trade and investment flows as well as the significance of non-governmental organisations and business associations. We also examine trade and investment flows between BSEC countries and the EU to indicate the level of reorientation of transnational exchanges outside the subregion and towards a larger neighbouring market.