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Economic Integration and Regional Policy Cooperation

In: Creating an Internationally Competitive Economy

Author

Listed:
  • Jeffrey Petchey
  • Perry Shapiro

Abstract

Economic unions often begin by establishing common markets for trade in goods and services. In some cases, for example the European Union, common factor markets that allow the free flow of capital and labour are also established. Integration of factor markets implies that as a state chooses its policies it will change the distribution of mobile factors with in the common market and hence have an effect on neighbouring states. In other words, integration implies increasing policy interdependence.

Suggested Citation

  • Jeffrey Petchey & Perry Shapiro, 2001. "Economic Integration and Regional Policy Cooperation," Palgrave Macmillan Books, in: Harry Bloch & Peter Kenyon (ed.), Creating an Internationally Competitive Economy, chapter 9, pages 155-165, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-55706-2_9
    DOI: 10.1057/9780230557062_9
    as

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