Trade, labour and capital flows

European Union

Description

The less developed regions
Intra-Community trade - free movement of goods
Commercial policy
Economic policy - Economic and Monetary Union

Informations

• Publié par: EUROPEAN-UNION
• Nombre de lectures: 6
• Langue: English
• Poids de l'ouvrage: 8 Mo

Extrait

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SUBSERIES VI: AGGREGATE AND REGIONAL li 1
Volume 3:
Tirade, labo
capital flows The Single ¿Market Review
AGGREGATE AND REGIONAL IMPACT
TRADE, LABOUR AND
CAPITAL FLOWS:
THE LESS DEVELOPED REGIONS The Single Market Review series
Subseries I - Impact on manufacturing
Volume: 1 Food, drink and tobacco processing machinery
2 Pharmaceutical products
3 Textiles and clothing
4 Construction site equipment
5 Chemicals
6 Motor vehicles
7 Processed foodstuffs
8 Telecommunications equipment
Subseries II - Impact on services
Volume: 1 Insurance
2 Air transport
3 Credit institutions and banking
4 Distribution
5 Road freight transport
6 Telecommunications: liberalized services
7 Advertising
8 Audio-visual services and production
9 Single information market
10 Single energy market
11 Transport networks
HI Subseries - Dismantling of barriers
Volume: 1 Technical barriers to trade
2 Public procurement
3 Customs and fiscal formalities at frontiers
4 Industrial property rights
5 Capital market liberalization
6 Currency management costs
Subseries IV - Impact on trade and investment
Volume: 1 Foreign direct investment
2 Trade patterns inside the single market
3 Trade creation and trade diversion
4 External access to European markets
Subseries V Impact on competition and scale effects
Volume: 1 Price competition and price convergence
2 Intangible investments
3 Competition issues
4 Economies of scale
VI - Aggregate and regional impact Subseries
1 Regional growth and convergence Volume:
2 The cases of Greece, Spain, Ireland and Portugal
3 Trade, labour and capital flows: the less developed regions
4 Employment, trade and labour costs in manufacturing
Aggregate results of the single market programme 5
Results of the business survey EUROPEAN COMMISSION
The Single 3fa.rlcet Review
AGGREGATE AND REGIONAL IMPACT
TRADE, LABOUR AND
CAPITAL FLOWS:
THE LESS DEVELOPED REGIONS
The Single ¿Ha.rk.et Review
SUBSERIES VI: VOLUME 3
OFFICE FOR OFFICIAL PUBLICATIONS
OF THE EUROPEAN COMMUNITIES
KOGAN PAGE . EARTHSCAN This report is part of a series of 39 studies commissioned from independent consultants in the context
of a major review of the Single Market. The 1996 Single Market Review responds to a 1992 Council
of Ministers Resolution calling on the European Commission to present an overall analysis of the
effectiveness of measures taken in creating the Single Market. This review, which assesses the
progress made in implementing the Single Market Programme, was coordinated by the Directorate-
General 'Internal Market and Financial Services' (DG XV) and the Directorate-General 'Economic
and Financial Affairs' (DG II) of the European Commission.
This document was prepared for the European Commission
by
Centre for Economic Research and Environmental Strategy
(CERES)
It does not, however, express the Commission's official views. Whilst every reasonable effort has
been made to provide accurate information in regard to the subject matter covered, the Consultants are
not responsible for any remaining errors. All recommendations are made by thes for the
purpose of discussion. Neither the Commission nor the Consultants accept liability for the
consequences of actions taken on the basis of the information contained herein.
The European Commission would like to express thanks to the external experts and representatives of
firms and industry bodies for their contribution to the 1996 Single Market Review, and to this report
in particular.
© European Communities, 1998
No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording or otherwise without written permission
from the copyright holder.
Office for Official Publications of the European Communities
2 rue Mercier, L-2985 Luxembourg
ISBN 92-827-8808-3 Catalogue number: C1-72-96-003-EN-C
Kogan Page. Earthscan
120 Pentonville Road, London N1 9JN
ISBN 0 7494 2340 4 Table of contents
Table of contents
List of tables viii
List of figures xi
List of abbreviations xii
Acknowledgements xiv
1. Summary 1
1.1. Introduction and methodological approach
1.1.1. Qualitative indicator analysis 2
1.1.2. Regression analysis
1.2. The main strengths and limitations 3
1.2.1. The main limitations
1.2.2. The main strengths
1.3. The main results 4
1.3.1. Static effects
1.3.2. Location effects 5
1.3.3. Factor accumulation and growth effects 6
1.3.4. Other related issues
1.4. Specific results for each country
1.4.1. The main results for Ireland
1.4.2. The mains for Italy 7
1.4.3. The main results for Greece 8
1.4.4. The mains for Portugal 10
1.4.5. The main results for Spain1
1.4.6. The mains for East Germany2
1.5. The main results regarding convergence3
2. Review of literature and methodological background IS
2.1. Introduction 15
2.1.1. The single market measures7
2.2. The impact of economic integration: theoretical predictions 18
2.2.1. Allocation effects
2.2.2. Accumulation effects
2.2.3. Location effects9
2.2.4. Technical change effects 20
2.3. The impact on trade flows 2
2.3.1. Introduction
2.3.2. Trade creation/diversion1
2.3.3. Intra-industry trade2
2.3.4. Relative international competitiveness and specialization6 Trade, labour and capital flows: the less developed regions
2.4. The impact on factor flows 27
2.4.1. Short- to medium-run effects 28
2.4.2. Long-run effects
3. Methodological approach to the empirical analysis9
23.1. Introduction
3.2. Indicator analysis 30
33 3.3. Regressions
35 3.3.1. Theoretical foundations of the model
3.3.2. The panel data approach 36
3.3.3. The measurement of technical progress 37
3.3.4. Co-integration and aggregation 40
3.3.5. Instrumental variables 41
3.3.6. Structural breaks and time-dependent parameters 41
42 3.3.7. The antimonde
3.3.8. Convergence analysis 42
3.4. The trade liberalization index 44
4. Empirical analyses of the less developed regions
of the European Union 53
4.1. Ireland5 Ireland
4.1.1. Background 5
57 4.1.2. Data
4.1.3. Indicator analysis 60
67 4.1.4. Main conclusions
69 4.1.5. Appendix Al to Section 4.1
4.2. Italy 7Italy
75 4.2.1. Background
83 4.2.2. Data
4.2.3. Indicator analysis 87
96 4.2.4. Regressions
106 4.2.5. General conclusions
109 4.2.6. Appendix Al to Section 4.2
119 4.2.7. x A2 ton 4.2
126 4.2.8. Appendix A3 to Section 4.2
4.3. Greece 133 Greece
4.3.1. Background 13
134 4.3.2. Data
4.3.3. Indicator analysis 138
165 4.3.4. Main conclusions from the indicator analysis
167 4.3.5. Regression analysis
176 4.3.6. Appendix Al to Section 4.3
178 4.3.7. x A2 ton 4.3
185 4.3.8. Appendix A3 to Section 4.3
4.4. PortugaPortugall 187
184.4.1. Background
191 4.4.2. Data
4.4.3. Indicator analysis 196 Table of contents vii
4.4.4. Main conclusions from the indicator analysis 207
4.4.5. Regression analysis for Portugal and Ireland8
4.4.6. Appendix Al to Section 4.4 21
4.4.7.x A2 ton 4.4 220
4.5. Spain 22
4.5.1. Background
4.5.2. Data 232
4.5.3. Indicator analysis4
4.5.4. The main conclusions drawn from the indicator analysis 278
4.5.5. Regression analysis 281
4.5.6. Appendix Al to Section 4.5 29
4.6. East Germany5
4.6.1. Background
4.6.2. Data6
4.6.3. Indicator analysis7
4.6.4. The main conclusions drawn from the indicator analysis 30
4.6.5. Appendix Al to Section 4.6 30
5. Comparative analysis and the issue of convergence 305
5.1.e analysis
5.1.1. Static effects
5.1.2. Location effects8
5.1.3. Factor accumulation and growth effects
5.1.4. Other related issues 309
5.2. An introduction to the convergence issue
5.3. Methodology 310
5.4. A test of the impact of the SMP on convergence 312
5.5. Conclusions4
5.6. Appendix Al to Chapter 56
5.7.x A2 tor 58
Bibliography 321 VIH Trade, labour and capital flows: the less developed regions
List of tables
The fundamental effects of economic integration Table 2.1. 16
Table 3.1. Relationship between the SMP and the nature and extent of trade flows 31
Table 3.2. The SMP and factor flows 32
Table 3.3. SMP measures 47
Table 3.4. Trade and factor liberalization measures for Germany 48
Table 3.5.e and factorns for Spain
Table 3.6.e and factorn measures for Greece9
Table 3.7. Trade and factor liberalizations for Italy
Table 3.8.e and factorn measures for Ireland 50
Table 3.9.e and factorn measures for Portugal
Table 3.10. The values of the trade liberalization index for all six countries
studied in this review 51
Table 4.1.1. The correspondence between the different