A History of Economic Cross-Border Agreements in Europe

Abstract

This article examines the history of economic thought and cross-border agreements in Europe. The work of early scholars such as Adam Smith and David Ricardo provides an insight into the benefits of trade. Additionally, David Hume’s description of fundamental laws shows the necessity of cross-border economic agreements. The first cross-border agreements on economic issues mainly relate to trade. Early cross-border agreements failed to establish economic cooperation between the countries of Europe. In contrast to the pre-Second World War agreements that failed to maintain peace, the post-Second World War cross-border agreements established peace, perhaps through this economic cooperation and interdependence.

Keywords: Economic thought, History of Europe, Cross-border agreements, Trade, Economic laws, Classical economics, Enlightenment, Fundamental laws, International treaties.

JEL Classification: B1