This paper extends the theory of multinational corporations, identifying three distinct influences of internal trade liberalisation by a group of countries on the level and pattern of inward foreign direct investment (FDI). First, the tariff-jumping motive encourages plant consolidation. Second,...

The global welfare implications of home market effects in trade models with imperfect competition are little understood. This paper proposes a simple model in which such implications can be easily analyzed. It shows an overall tendency of imperfectly competitive sectors to inefficiently cluster...

In a common market with costless mobility of all factors, regional governments can attract mobile firms by granting subsidies which must be financed out of wage taxes on mobile labour. Since firms locate where subsidies are highest and workers settle where taxes are lowest, government are forced...

The present difficulties of democratic welfare states in Europe are often ascribed to economic "globalization", that is to the world-wide integration of markets for capital, goods and services which has eliminated national control over boundary-crossing economic transactions, and which therefore...

In this paper the present challenges of consolidation and deeper integration of Mercosur will be discussed, in order to shed some light on the nature of the problems, that might be responsible for the present slow down of the speed of integration. In the second chapter I shall outline the...

Unlike previous steps in West European integration, the Treaty of Maastricht contains hardly any of the liberal elements which had so far kept the centralizing and bureaucratic features of the EC in check. The treaty embodies a vision of a uniform EC, to be modelled along the lines of an...

In January 1995 Austria, Sweden, and Finland became member states of the European Union. All three countries have traditionally given comparatively high priority to environmental protection. This paper deals with the question of what influence the new members will have on environmental...