Underdeveloped Europe : regional problems and policies in the context of European integration : a comparative study with reference to France, Italy and the Reublic of Ireland

Abstract

Introduction; One aspect of the analysis of regional problems is that it is easier to describe the symptoms than to point to the causes. We begin this chapter by highlighting a few of the most evident "symptoms" of the regional problem. Some of the possible causes are then discussed. Thirdly we look into the overall pattern of regional development at the European Community level. This is discussed, (i) at a theoretical level with reference to location theories and theories of spatial competition; (ii) at an empirical level with respect to regional employment and industrial structures, and (iii) at a dynamic level, taking into consideration factors which may explain the process of economic growth at a regional level. Fourthly, we consider the implications of greater interEC trade links and direct foreign investment on the pattern of regional development. This leads on to a discussion of the regional implications of the multinational enterprise — the locational aspects, the distribution of their economic surplus, and their linkages with firms in the domestic sector. Fifthly, some alternative strategies for regional harmonisation are outlined. Policies to reduce regional disparities can be divided into two groups; firstly macropolicies working at either a national or Community level, such as public spending or fiscal integration; secondly micro-policies such as financial incentives and disincentive policies.