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REGIONAL CONVERGENCE IN THE EUROPEAN MONETARY UNION
Author(s) -
ABRAHAM Filip,
ROMPUY Paul
Publication year - 1995
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1995.tb00632.x
Subject(s) - convergence (economics) , economics , wage , european union , flexibility (engineering) , european monetary union , international economics , macroeconomics , monetary policy , labour economics , management
This paper analyzes the effects of European Monetary Union (EMU) on regional convergence. First information is provided about the magnitude and the evolution of regional disparities. Subsequently, the relation between economic integration and long run regional convergence is discussed. Third, regional convergence is shown to be dependent on flexible regional adjustment to changing economic conditions. In the transition to and in the final stage of EMU sufficient regional wage flexibility will be requires to cope with adverse economic shocks. The last part of the paper estimates the reponse or regional labor income to region‐shape and national shocks.