European economic integration is commonly believed to be incomplete, and that further reforms are needed. In this context, the union of U.S. states is considered the benchmark of complete economic integration and is often the basis for comparison regarding the extent of E.U economic integration....

European politics has provided clear signals: the next round in the process of EU enlargement with the accession of the Central and Eastern European countries (CEEC) will come. Since expectations concerning the costs and benefits of integration are varied, it is our aim to contribute to this...

The classical Heckscher-Ohlin-Mundell paradigm states that trade and capital mobility are substitutes, in the sense that trade integration reduces the incentives for capital to flow to capital-scarce countries. In this paper we show that in a world with heterogeneous financial development, the...