Isolation Essay

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ESSAYS ON ECONOMIC INTEGRATION ISBN 90 5170 702 9 C o v e r d e sig n : C ra sb o rn G ra p h ic D e sig n e rs b n o , V a lk e n b u rg a .d . G e u l T h is b o o k is n o . 3 91 o f th e T in b e rg e n In stitu te R e se a rch Se rie s, e sta b lish e d th ro u g h c o o p e ra tio n b e tw e e n T h e la T h e sis a n d th e T in b e rg e n In stitu te . A list o f b o o k s w h ich a lre a d y a p p e a re d in th e se rie s c a n b e fo u n d in th e b a ck . ii Essays on Economic Integration (Essays over economische integratie) Thesis to obtain the degree of Doctor from the Erasmus U niversity Rotterdam by command of the Rector M agnifi cus P rof.dr. S.W .J . L amberts and in accordance with the decision of the Doctoral Board. The public defence shall be held on F riday, 1 December 2006 at 09:00 hrs by Muhammad Intan Sakti Haris Munandar born in J akarta, Indonesia Doctoral Committee P romoter: O ther memb ers: P rof.dr. J .-M.A .R .G . V iaene P rof.dr. H.P . B ow en P rof.dr. J .F . F rancois Dr. D.J .C. v an Dijk Acknowledgements Three years ago I started my Ph.D. track at Erasmus University and Tinbergen Institute, finally resulting in this dissertation. Several people have given me an opportunity to take this path in the first place, have provided enthusiastic guidance and support along the way, and have off ered me shelter from time to time in a caring way. First of all, I would like to thank my promoter, Jean-Marie Viaene. Jean-Marie has taught me accuracy and effi ciency and has shaped my thinking on many issues. I thank him for spending time to discuss things until at last I chose to accept his arguments, or, in fewer circumstances, the other way around. Surely, credit should also go to my coauthors H arry P. Bowen, Christian M. H afner and Dick van Dijk. Two people deserved recognition for showing me the gate to enter the

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