The Economic Principles of European Integration

By Stephen Frank Overturf | Go to book overview

CHAPTER 10
Regional Policy

In dealing with regional policy within the EC one must first address the nature of the regional problem itself. Although it has been said that there are as many problems as there are regions within the Community, there appears to be some consensus in identifying four basic types of regional problem. They are: (a) the older (labor-intensive) agricultural area that technology has made redundant, at least for the labor that used to be employed on the land; (b) the industrial area associated with one or two products that have declined due to technology change, imports, or demand shift; (c) the growing center of production that is experiencing significant social costs; and (d) the border areas that have not been developed, even though they might have flourished had the entire region been part of one administrative unit (due to lack of transportation linkages, barriers to commerce, etc.).

Economic theory may be used to examine these issues (especially the first three) in an attempt to generalize "the" regional problem into one of adaptation to change (using comparative statics) with a further dynamic element that may induce regional decline over a very long period of time. The first section will examine this theory, the second will indicate how integration may further affect the problems of depressed areas, the third will examine some of the facts of the formation of the Community on regional growth, and, finally, the fourth section will examine EC policies along with some perceived problems of those policies.


THEORY OF REGIONAL DECLINE

The theory of regional decline includes a comparative statics

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The Economic Principles of European Integration
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Preface xi
  • Acknowledgments xiii
  • Chapter 1 History of European Economic Integration 1
  • Chapter 2 Community Institutions 15
  • Chapter3 Customs Union Theory 21
  • Chapter 4 Factor Mobility and Tax Harmonization 35
  • Chapter 5 Monetary Union 46
  • Conclusion 59
  • Chapter 6 Industrial Policy 61
  • Chapter 7 Common Agricultural Policy 75
  • Conclusion 87
  • Chapter 8 Trade Relations: Developing Countries 89
  • Conclusion 101
  • Chapter 9 Trade Relations: More Developed Countries 102
  • Chapter 10 Regional Policy 118
  • Chapter 11 Social Policy 134
  • Conclusion 144
  • Appendix Treaty Establishing the European Economic Community 147
  • Bibliography 167
  • Index 169
  • About the Author 173
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