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Trade and Investments in the EMU Regions

In: Spatial Dynamics of European Integration

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  • Dino Martellato

Abstract

The regional effects of EMU have been virtually ignored in the EMU Manifesto1, yet the regional effects of a monetary union have always appeared to be rather important, except to international economists who always have made the assumption that ‘place prosperity’ implicitly identifies with ‘people prosperity’. It was probably Edgar Hoover (1971) in his Introduction to Regional Economics who first called into question the identification of ‘place’ with ‘people’ prosperity. When dealing with separate national economies, it is reasonable to assume that national governments can implement regional equalisation policies, but in a monetary union like EMU things could be very different. In the countries admitted to the club, national governments have fewer policy instruments than before. This means the risk of the unequal sharing of benefits breaking the identity between ‘place’ and ‘people’ at community and national level as well.

Suggested Citation

  • Dino Martellato, 1999. "Trade and Investments in the EMU Regions," Advances in Spatial Science, in: Manfred M. Fischer & Peter Nijkamp (ed.), Spatial Dynamics of European Integration, chapter 6, pages 110-128, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-60180-4_6
    DOI: 10.1007/978-3-642-60180-4_6
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