Over ten years after the launching of the Single Market the EC?s directives aimed to the liberalization of government procurement remain largely unimplemented. This paper analyses the consequences on the pattern of specialization, on welfare and on income inequalities of the persistence of a...

A 2-country model with two groups of agents, workers and capitalists is presented in which economic integration results in an initial phase of catch-up, where the less industrialised country experiences the rise in both capital and labour income. Then, after a certain level of integration has...