Much recent research has been devoted to the consequences of the completion of the internal market in 1992. Existing estimates of the effects of market integration remain very preliminary, however, and many important issues have yet to be adequately addressed. These formed the subject of a conference on "The Impact of 1992 on European Trade and Industry" held by the Centre for Economic Policy Research. This book reports the proceedings of that conference. The contributors to the volume address such issues as the gains to be expected from both "internal" and "external" economies of scale following integration, and the implications of 1992 for the Community's trade with both its traditional EFTA partners, the potentially valuable new East European markets, and the rest of the world. The volume also contains papers considering the effects of the completion of the internal market on the design of appropriate technology and taxation policies and a study of the role of Japanese foreign direct investment in European manufacturing.

Much research has been devoted to the consequences of the completion of the European internal market in 1992. Existing estimates of the effects of market integration remain exploratory, however, and many important issues have yet to be adequately addressed. These are the issues concerning this book. Edited by L. Alan Winters and Anthony Venables, the volume examines such questions as the extent of gains to be expected from both 'internal' and 'external' economies of scale following integration, the implications of 1992 for the European Community's trade with its traditional EFTA partners, the potentially valuable new East European markets, and the rest of the world. There are also chapters considering the implications of the internal market for the design of appropriate technology and taxation policies, and a study of the role of Japanese foreign direct investment in European manufacturing.

A study of the nature and the policy implication of changes in the global economy in relationship to the process of regional integration, conducted using the newest techniques of economic analysis. The principal message drawn from these analytical and policy insights is that in a world characterised by trade distortions and nonlinearities, regional integration may or may not foster global integration, and may or may not advance regional or global convergence. The key is good economic policy based on sound economic analysis. Part one of the volume covers three international trade policy issues: regionalism and multilateralism; the political economy of trade policy; and trade income inequality. Part two (chapters 7-11) focuses on three 'domestic' problems faced by regional groups: labour migration; exchange rate arrangements; and real convergence.