Publication

This paper examines the dramatic change in the spatial distribution of economic activity as a result of the implementation of the European internal market and East-West integration. According to the author, higher growth can be observed west and east of a longitude degree through Germany and Italy, while in the east, income growth has been accompanied by increasing regional disparities within countries. Using a numerical simulation model with 9 countries and 90 regions, theoretical predictions are derived about how various patterns of integration may affect the income distribution.