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Regional policy, convergence and subsidiarity in the European Community

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  • Thomas, Ingo P.
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    Abstract

    The aim of this paper is to shed light on how real income has developed across the member states and regions of the EC and to consider what demands this will place on regional policy. According to the principle of subsidiarity, a necessary, though not a sufficient, condition for EC intervention would be to prove that the scale of regional problems is too great to be handled by member states. Using two concepts of convergence, it can be shown that income convergence across the member states and even across the regions of the EC is the norm. Based on the principle of subsidiarity, policy implications concerning the assignment of a complementary function for redistributive regional policy to the EC tier are derived from the empirical evidence.

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    File URL: http://econstor.eu/bitstream/10419/47098/1/257667016.pdf
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    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 737.

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    Date of creation: 1996
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    Handle: RePEc:kie:kieliw:737

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    1. Begg, Iain & Mayes, David, 1993. "Cohesion in the European community : A key imperative for the 1990s?," Regional Science and Urban Economics, Elsevier, vol. 23(3), pages 427-448, July.
    2. Jean Pisani-Ferry & Damien Neven & Claudine Gouyette, 1994. "European Integration and Regional Growth," Revue Économique, Programme National Persée, vol. 45(3), pages 703-714.
    3. Danny Quah, 1992. "Empirical cross-section dynamics in economic growth," Discussion Paper / Institute for Empirical Macroeconomics 75, Federal Reserve Bank of Minneapolis.
    4. Opp, Karl-Dieter, 1994. "The Role of Voice in a Future Europe," Kyklos, Wiley Blackwell, vol. 47(3), pages 385-402.
    5. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
    6. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
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