Eastern Europe is in the midst of a radical change. In order to increase the chances of success of their Perestroika, the reformers, especially those from Hungary, Poland and the Soviet Union, are striving for closer links between their countries and the economically-advanced Western , Europe....

The winds of change are blowing through Europe. In the western half of the divided continent the European Community (EC) is setting about to complete its Internal Market by the end of 1992, in the East various members of the Council for Mutual Economic Assistance (Comecon) are striving for a...

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,...

Wie weit die EG auf dem Weg zum Binnenmarkt vorangekommen ist, läßt sich daran messen, ob die Abweichungen der Preise auf den nationalen Märkten vom EGDurchschnitt im Zeitablauf abgenommen haben (Trend zum Preisausgleich). Preisvergleiche für bestimmte Güter, Dienstleistungen und...

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...