European Economic Integration: Limits and Prospects

By Alexis Jacquemin; Miroslav N. Jovanovic | Go to book overview

8

REGIONAL POLICY

I

INTRODUCTION
The prevailing attitude towards regional policy was one of non-intervention until the economic crisis of the 1930s. As the allocation of resources is perfect in a situation of free trade, 1 intervention in the form of regional policy is not necessary. Such a ‘classic’ premise has not, however, passed the test of time. The reasons for the alteration of the classic idea included not only transport costs, but also other market imperfections such as economies of scale or externalities. In those circumstances, an industrial policy is generally directed towards an increase in national or regional production potential and capabilities through a (supposedly) efficient allocation of resources from the national standpoint. 2 The objective of a regional policy is, however, to influence the distribution of the created wealth and to contribute to the easing and eventual solution of the ‘regional problem’. In spite of intervention in regional affairs, there has appeared a recent move towards abandoning or, at least, easing and changing intervention in regional matters.There is still controversy regarding the question of what constitutes the ‘regional problem’. If taken together, there are several elements that may provide an insight into this issue. First, there is the situation when different regions grow at uneven rates for a long period of time, so the policy action endeavours to reduce that problem. Second, intervention may also aim at an equalization of consumption or GDP per capita among different regions. Third, the government may be interested in a relatively equal access of the population throughout the country/union to an adequate level of public goods and services. Another concern of the public authorities may be to include a spatially stable distribution of economic activities and population in order to avoid negative externalities.Governments intervene in regional matters at least because of the following three reasons:
equity (this social motive is based on public pressure on the government to try to achieve a ‘proper’ balance and an ‘orderly’ distribution of national wealth among different regions);
efficiency (the desire to employ, sustain and increase national economic potential and capabilities); and
strategic behaviour (public authorities want to control the comparative advantages of the country).

-287-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
European Economic Integration: Limits and Prospects
Table of contents

Table of contents

  • Title Page i
  • Contents vii
  • Figures viii
  • Tables ix
  • Foreword xi
  • Preface xiv
  • Acknowledgements xviii
  • Abbreviations xix
  • 1 - The Origin of the European Union 1
  • 2 - Monetary Policy 42
  • 3 - Fiscal Policy and the Budget 71
  • 4 - Common Agricultural Policy 98
  • 5 - Competition Policy 130
  • 6 - Industrial Policy in Manufacturing and Services 168
  • 7 - Trade Policy 215
  • 8 - Regional Policy 287
  • 9 - Capital Mobility 309
  • 10 - Labour Mobility 333
  • 11 - Social Policy 342
  • 12 - Environment Policy 353
  • 13 - Transport Policy 361
  • 14 - Conclusion 367
  • Bibliography 371
  • Index 382
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 389

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.