“…Johnson (1965) suggest that trade-diversion may actually be welfare-increasing if the welfare losses resulting from the diversion to a high-cost supplier country is more than compensated by the welfare gains resulting from the reduced prices to consumers due to the elimination of tariff on imports. Although the trade effect of integration on growth is a well-researched topic (Calderón & Castro, 2019;Menyah, Nazlioglu, & Wolde-Rufael, 2014;Polat, Shahbaz, Rehman, & Satti, 2013;Zerbo, 2015), there are still debates around the area. Linder (1961 ) observes that economic integrations have a greater potential to contribute to growth if it consists of countries with similar demand preferences or similar income per capita.…”