The long-run effects of regional integration are analyzed in this book. On the basis of the development of a model of endogenous regional growth (which combines an endogenous growth model with aspects of "new" economic geography) and an empirical analysis of stylized facts for the European case, the monograph looks on mechanisms by which regional integration measures affect long-run growth rates as well as production and trade patterns. Integration measures include trade liberalization, liberalization of factor flows, harmonization of policies as well as an enlargement of an integration bloc. The previous literature has always stressed the importance of such growth rate effects of regional integration, but has not - due to the lack of an appropriate theoretical framework, analyzed these effects in detail. The study present is a step towards closing this gap in the literature.

Deepening and enlarging regional integration blocs is high on the political agenda, as can be seen most notably in the last decade of the European in tegration process. The effects of this process have been studied extensively. But, until recently, these studies have been limited to the theoretical anal ysis of static effects of regional integration. The revival of growth theory has, however, in principle provided a set of models and tools which allow to investigate the dynamic effects of regional integration. At the same time, the "new regional economics" (or economic geography) literature allowing to focus on the special features of regional integration and integration blocs has emerged. The aim of this study is to merge endogenous growth approaches with "new regional economics" models in order to investigate various aspects of the long-run effects of regional integration in a dynamic general equilibrium framework. It is needless to say that such an analysis can cover only selected issues and leaves others aside. It is the purpose of the present study, how ever, to look at both types of regional integration: the dynamic effects of a deepening of the integration process as well as of an enlargement of the integration bloc. This is done on the basis of an investigation of empirical regularities of regional developments in an integration bloc (mainly in the European Union).

Inhalt
1 Introduction.- 1.1 The Issues.- 1.2 Objectives and Methods of the Study.- 1.3 Organization of the Study.- 2 Some Empirical Observations.- 2.1 The Development of European Regions.- 2.2 Technology, Geography, and Growth.- 2.3 Summary.- 3 Brief Overview of Related Literature.- 3.1 Static Models of Regional Integration.- 3.2 Growth and International Integration.- 4 Growth and Economic Geography.- 4.1 The Basic Elements.- 4.2 A Two-Country Model.- 4.3 Short-Run Equilibrium.- 4.4 The Steady-State.- 4.5 The Role of Physical Capital Accumulation.- 4.6 Appendix.- 4.7 Summary.- 5 Deeper Regional Integration.- 5.1 Liberalization in a Two-Country Setting.- 5.2 Regional Integration as Partial Liberalization.- 5.3 Regional Policies and Policy Harmonization in an Economic Union.- 5.4 Summary.- 6 Enlarging the Integration Bloc.- 6.1 Integrating a Lagging Country.- 6.2 Integrating a Developed Country.- 6.3 Leapfrogging through Integration.- 6.4 Summary.- 7 General Summary.- List of Main Symbols.- References.