Publication: European Growth in the Age of Regional Economic Integration : Convergence Big Time?
Western Europe experienced a Golden Age of economic growth from the early 1950s to the early 1970s during which the average rate of growth of real GDP per person was just over 4 per cent per year. When viewed through the lens of growth accounting the fast growth of the Golden Age was based on catch-up both through capital deepening and very strong TFP growth. European integration has been accompanied by the patterns of spatial disparity highlighted by the new economic geography. These models suggest that reductions in trade costs may lead industry to move to locations with proximity to markets because they permit realization of economies of scale or because it is advantageous to locate close to either customers or suppliers. The remaining inequality of regional GDP per person in Europe is largely a within-country phenomenon. One example of outstanding economic growth has been Ireland where growth is firmly located in an era of globalization and regional economic integration.
“Crafts, Nicholas. 2009. European Growth in the Age of Regional Economic Integration : Convergence Big Time?. © Washington, DC: World Bank. http://openknowledge.worldbank.org/entities/publication/2c5bf201-6171-5448-8747-3a61402ae0b0 License: CC BY 3.0 IGO.”