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Reunifying Europe in an Emerging World Economy: Economic Heterogeneity, New Industrial Options, and Political Choices

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  • John Zysman
  • Andrew Schwartz

Abstract

This article examines the industrial reintegration of central and eastern Europe into the broader European economy in the context of the emerging world economy. Since the Cold War, Europe’s economic heterogeneity has sharply increased, making it comparable to Asia. And Europe as a whole must adapt to a global economy of three regional centres and industrial strategies implemented through International Production Networks (IPNs). The article asks whether policies favoring IPNs that link east and west can reconcile eastern industrial development with western prosperity and employment. Thus the eastward enlargement of the European Union, which has been driven primarily by security concerns, can also improve the region’s competitiveness in global markets.

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  • John Zysman & Andrew Schwartz, 1998. "Reunifying Europe in an Emerging World Economy: Economic Heterogeneity, New Industrial Options, and Political Choices," Journal of Common Market Studies, Wiley Blackwell, vol. 36(3), pages 405-429, September.
    • Handle: RePEc:bla:jcmkts:v:36:y:1998:i:3:p:405-429
    DOI: 10.1111/1468-5965.00117
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    References listed on IDEAS

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    1. Lemoine, Françoise, 1998. "Integrating Central and Eastern Europe In the European Trade and Production Network," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt5r66s4ng, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    2. Huber, Peter & Wörgötter, Andreas, 1998. "Political Survival or Entrepreneurial Development? Observations on Russian Business Networks," MPRA Paper 20412, University Library of Munich, Germany.
    3. Comisso, Ellen, 1998. ""Implicit" Development Strategies in Central East Europe and Cross-National Production Networks," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt3wx6r2qv, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    4. Michael Borrus & John Zysman, 1997. "Globalization With Borders," Industry and Innovation, Taylor & Francis Journals, vol. 4(2), pages 141-166.
    5. Guerrieri, Paolo, 1998. "Trade Patterns, FDI, and Industrial Restructuring of Central and Eastern Europe," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt3bs313rc, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    6. Kurz, Constanze & Wittke, Volker, 1998. "Using Industrial Capacities as a Way of Integrating Central-East European Economies," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt5jq7g4k9, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    7. van Tulder, Rob & Ruigrok, Winifred, 1998. "European Cross-National Production Networks in the Auto Industry: Eastern Europe as the Low End of European Car Complex," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt35n5n451, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    8. Magnus Blomstrom & Robert E. Lipsey & Mario Zejan, 1992. "What Explains Developing Country Growth?," NBER Working Papers 4132, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Pellegrin, Julie, 1999. "German production networks in Central, Eastern Europe: between dependency and globalisation," Discussion Papers, Research Unit: Economic Change and Employment FS I 99-304, WZB Berlin Social Science Center.
    2. Dimitris Kallioras & George Petrakos, 2010. "Industrial growth, economic integration and structural change: evidence from the EU new member-states regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(3), pages 667-680, December.
    3. David Stark & Balázs Vedres, 2005. "Sequenze di rete e investimento estero in Ungheria," Stato e mercato, Società editrice il Mulino, issue 3, pages 391-422.
    4. Miroslav N. Jovanović, 2015. "The Economics of International Integration, Second Edition," Books, Edward Elgar Publishing, number 15166.
    5. Kaminski, Bartlomiej & Ng, Francis, 2001. "Trade and production fragmentation : Central European economies in European Union networks of production and marketing," Policy Research Working Paper Series 2611, The World Bank.
    6. Pavel Neumann, 2008. "Fragmentation versus Unity of the World Economy [Fragmentace versus jednota světové ekonomiky]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2008(2), pages 70-89.
    7. Štefan Bojnec & Imre Fertő, 2015. "Agri-Food Export Competitiveness in European Union Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 53(3), pages 476-492, May.

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