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Economic frontiers

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Background

Political& economicpremises of Europeanintegration- a deterrence effect

- a resource allocation effect The gains of 1957 and 1992 hae !een partl"e#hausted

$e% resources for gro%th emerge %ithin a

less fragmented area- Political multi-tier goernance- Economic scale and e#ternalit" 'marketintegration ()

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Economies from scale and e#ternalit"

implications

* +a#imi,ed !enefits %ithin a variable-

geometry areaa territorial effect.

/ 1 Basic benefits net%orks and

agglomerations a alue-added effect.

/ 2Advanced benefits conte#ts of

deelopment a polic" deelopment effect.

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Basic benefits

$et%orks & 0gglomerations the economicadantage of linkages & pro#imit" consists inalue-added creation

omplementarit" to create a %e! of spatiallinkages net%orks facilitate e#changes withinand betweenagglomerations

Two research questions

How does a web of spatial linkages evolveinto an economic region?

o% do %e recogni,e the economic frontiers3

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A macro-view of the economic frontier

Optimal institutional designEsta!lishing a customs union '4iner 195*)6edistri!ution in federal countries 'cott195*8 6othen!erg 197*)ptimumcurrenc" areas 0 '+undell 19:1)Theor" of clu!s %ith contri!utions from lson '19:5) and Buchanan '19:5)

Theor" of clubs howand whycountries 'or more generall"indiidual actors) %ould find it adantageous to !e part of the same

group 'a negotiated ;urisdiction)< Benefitsresult from economies of scale and e#ternalities

associated %ith the consumption of some =core> goods goods thatare essential for the clu! formation in the first place industrial structures8 ageing of social capital 'ur!ani,ation personal connections merits

etc

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Pitfalls

Jeographic pro#imit"

Nato%ice-straabut Opper 6hine 4alle"

Jeographic identifiers

Black ea but candinaia

Ethnic or tri!al homogeneit" Knationalit"

Belgiumbut %it,erland

+onetar" union

European Onion but Onited tates

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0 case stud" 6omania

'a) a regional perspectie

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0 case stud" 6omania

'a>) a regional perspectie

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0 case stud" 6omania

'!) the competitie enironment'share of ori,ontal ?ntra-industr" Trade in total !ilateral trade)

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iscussion

6omania is part of a conte!t of developmenttogether %ith Bulgaria and Turke"

?ncreased trade integration %ith

- ungar" Bulgaria ?tal" Jerman" Poland ON$etherlands 0ustria- contri!utions of regional economies3

The single market triggers a =competitie effect> oflesser intensit" than consolidated !ilaterale#changes '25Q-R5Q S R5Q-5*Q)

?ndirect eidence of positie net%ork economies

?ncipient stages of agglomerations economies

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6ethinking the EO space of

integration

The result of the 1957 pro;ect an aggregate of

atomistic countries

The 2*12 moment an aggregate of conte#ts of

deelopment

ountries dela"ing the process of cross-!order

cooperation %ill miss =the polic" deelopment

effect> of in-depth economic integration 6emapping integration a European challenge