Background conditions  Conditions at the time of economic union  Process Conditions 
1. size of unit 2. rate of transactions 3. pluralism 4. elite complementarity 
1 .possible governmental purposes 2. powers and functions of new regionlevel institutions 
1. decisionmaking style 2. rate of growth of transactions 3. adaptability of governmental/private actors 
Source: Derived from Haas and Schmitter (1964)
Integration through trade and projects  Integration through investment  
Logistic Regression  Logistic Regression  Linear Regression  Linear Regression  
Trade with Europe Model 1 
Projects Model 2 
Invest. Risk Model 3 
Invest. Potential Model 4 

Contextual variables  
European Regions       .38 (3.99) ***   
European Border    3.5 (1.2)**     
Economic develop.      .299 (2.76)**  .597 (6.33) *** 
Ethnicity         
Domestic policy variables  
Federal Status         
Bilateral Treaties  1.26 (.57) *       
Nagelkerke R Sq.  . 25  .49  
R Square  .41  .55 
*** significant at the 0.00 level
** significant at the 0.01 level
*significant at the 0.05 level
Note: Entries for Logistic Regressions are Beta (B) and Standard Error (SE) given in parentheses Entries for Linear Regressions are Standardized Coefficients (Beta), with ttest given in parentheses.