The major obstacles to effective economic integration in developing regions are as follow
1. Economic integration results in trade diversion in terms of shifting production from low cost non-member state to high cost member state. Trade diversion is considered as undesirable because diversion of production from efficient non-member states to inefficient member states make member countries more worse off and thus acts as roadblock in effective economic integration in developing regions.
2. Inequalities in terms of rate of growth and per capita income combined with widening disparities in their priorities and interests also acts as obstacle in effective economic integration in developing regions.
3. Religious differences among developing countries have also acted as major stumbling block in creation of effective economic integration in developing regions.