50 years of EU economic dynamics : integration, financial markets and innovations / Richard Tilly, Paul J.J. Welfens, Michael Heise, editors.

Format:

Book

Contributor:

Tilly, Richard H.

Welfens, Paul J. J.

Heise, Michael.

Language:

English

Subjects (All):

European Union countries--Economic integration--History.

European Union countries.

History.

Physical Description:

xii, 359 pages : illustrations ; 24 cm

Other Title:

Fifty years of EU economic dynamics

Place of Publication:

Berlin ; New York : Springer, 2007.

Summary:

On the occasion of the 50th anniversary of the European Union experts present their analyses of historical developments and new economic challenges for the EU. After a reflection on historical dynamics, the contributors point out the dramatic economic shifts between Europe, Asia and the US. Representatives from major central banks (including the ECB), other leading banks, and academia analyze the dynamics of the Eurozone and financial market integration in the context of globalization and economic growth. Furthermore, the authors discuss the challenges of information and communication technologies by means of various country analyses. Moreover, the Schumpeterian prospects for Europe and the Lisbon Agenda, the long-term challenges of EU pension reforms, emission trading systems in the EU, and options for a new EU constitution are highlighted. At the bottom line of this EU analysis are major implications for investors, managers, policy-makers and the public at large in both the EU and the global economy.

Contents:

A The European Union 50 Years On: Some Comments on Its Early History / Richard Tilly 11

A.2 Historical Background and Economic Nationalism 11

A.3 Post-1945 European Economic Integration 13

A.3.1 "Monnetism" and the European Coal and Steel Community 13

A.3.2 The Role of West German Trade 15

A.3.3 Birth of the European Economic Community 18

A.3.4 The Legacy of Agricultural Protectionism 20

B Global Shift - The European Union, the United States, and the Emergence of China / Thomas Gries 25

B.2 Population 27

B.3 Economic Activities 29

B.4 International Trade and Economic Integration 33

B.5 International Finance and Economic Integration 40

C Growth and Competitiveness in Europ Area Economies / Lucas Papademos 47

C.2 Conditions and Policies for Higher Euro Area Growth 48

C.3 Output Growth Differentials in the Euro Area Countries 50

C.4 Competitiveness of the Euro Area Countries 52

C.5 Inflation and Cost Differentials Across the Euro Area Countries 53

C.6 Structural Reforms for Higher Growth and Improved Competitiveness 56

D Financial Market Integration and Monetary Policy / Hans-Helmut Kotz 59

D.1 Filling the Gaps in the Chain of Substitution 59

D.2 Integration of Financial Markets: Concepts and Indicators 60

D.3 Financial Markets Heterogeneity: Consequences for Monetary Policy 67

D.4 Pushing Back Limits to Arbitrage - Integration Through Markets 70

D.5 By Way of Concluding - Variety Is Manageable 72

E Instability of the Eurozone? On Monetary Policy, House Prices and Structural Reforms / Ansgar Belke, Daniel Gros 75

E.2 Monetary Policy for a Slow Growth Economy and Structural Reforms in Europe 77

E.2.1 Monetary Policy as a Driver of Structural Reforms? 77

E.2.1.1 Structural Reforms and European Monetary Union - What Can We Learn from the Data? 78

E.2.1.2 Monetary Policy Autonomy and Structural Reforms: The Case of European Monetary Union 79

E.2.2 Main Pattern of Empirical Results and Stylized Facts 81

E.3 What Kind of Monetary Policy for a Slow Growth Economy? 82

E.3.1 Not Enough Loosening? 83

E.3.2 Between Two Pillars 84

E.3.3 What Happened to the Monetary Pillar? 85

E.3.4 The Costs of Ignoring the Monetary Pillar 87

E.4 The European Monetary Policy in a Large and Diversified Economic Zone 94

E.4.1 EMU's Coming Stress Test 94

E.4.1.1 EMU's Potential Breaking Points Resurface 95

E.4.1.2 A New Element: Intra-Area Divergences 96

E.4.1.3 Italy Moving Towards the Brink 97

E.4.1.4 Some More Formal Considerations: Instability in a Monetary Union? 98

E.4.2 The Stress Test in Action 100

E.5 Policy Conclusions 102

Explanation for Table 1 105

F Financial Markets and Global Integration / David Dickinson 109

F.2 Levels of Financial Integration 109

F.3 Benefits of Financial Integration 112

F.4 Financial Market Integration and Investor Behaviour 116

F.5 The Future for Financial Market Integration 119

G Banking, Financial Market Dynamics and Growth in the EU Single Market / Michael Heise 123

G.1 The Importance of Financial Markets to Economic Growth 123

G.2 The Euro and the Wholesale Market 124

G.3 Retail Markets Still Domestically Focused 125

H Banking, Financial Market Structures and Growth in the EU Single Market / Freddy van den Spiegel 129

H.1 Evolution of Financial Integration in the EU 129

H.2 Integration of Wholesale Markets 130

H.3 Integration of Retail Markets 131

H.4 Integration of Infrastructures 132

H.5 Institutional Integration 132

H.6 Integration of Prudential Supervision 134

H.7 Certain Conclusions 135

I Information and Communication Technology: Dynamics, Integration and Economic Stability / Paul J.J. Welfens 137

I.2 Economic Development, Adjustment and Outsourcing 142

I.2.1 Traits of the ICT Sector and Economic Dynamics 142

I.2.2 Financial Markets and ICT 145

I.2.3 Growth, Competitiveness and Outsourcing Dynamics 147

I.2.4 ICT, Outsourcing and R&D 147

I.2.4.1 ICT Dynamics: Outsourcing and Insourcing 148

I.2.4.2 ICT and R&D 155

I.2.5 Regional Integration Dynamics 164

I.3 Economic Stability: ICT and FDI in a Modified Dornbusch Model 166

I.4 Challenges: Regulatory Policy and Life-Long Learning 171

Appendix I.1 Modified Dornbusch-Model (Welfens 2006) 178

J The Role of Information and Communications Technology in Improving Productivity and Economic Growth in Europe: Empirical Evidence and an Industry View of Policy Challenges / Axel Pols 183

J.2 The Relevance of ICT for Productivity and Economic Growth 184

J.2.1 Empirical Evidence Concerning the Productivity and Growth Effects of ICT in the EU as Compared to the US 184

J.2.1.1 The Contribution of ICT Production to Productivity Growth 184

J.2.1.2 The Contribution of ICT Investment to Productivity and GDP Growth 186

J.2.1.3 The Contribution of ICT Use to Productivity Growth 187

J.2.2 Explaining the Empirical Evidence 189

J.3 Unleashing the Growth Potential of ICT in Europe: Policy Challenges and Recommendations from an Industry Perspective 190

J.3.1 The EU Level 191

J.3.1.1 Policy Challenges and Recommendations Related to the Creation of a Single European Information Space 192

J.3.1.2 Policy Challenges and Recommendations Related to Strengthening Innovation and Investment in ICT Research 193

J.3.1.3 Policy Challenges and Recommendations Related to Achieving eInclusion, Better Public Services, and Quality of Life 194

J.3.2 The Member-State-Level: The Case of Germany 195

J.3.2.1 A Brief Evaluation of the High-Tech Strategy from an Industry Perspective 195

J.3.2.2 Policy Challenges and Recommendations to Exploit the Potential of ICT in Germany: An Industry Perspective 196

J.3.3 ICT Meta Trends and Strategic Growth Areas 198

K Growth, Jobs and Structural Reform in France / Alain Chappert 203

K.1 GDP per Capita: Poor Apparent Performance, Complicated Contributions 203

K.2 Low Employment Levels: Reasons and Reforms Implemented or Needed 204

K.2.1 On the Supply Side 204

K.2.2 On the Demand Side 205

K.3 What About Productivity? 206

L Growth, Jobs and Structural Reform in the Netherlands / Kees van Paridon 209

L.1 On the Importance of Economic Policies 209

L.2 Structural Reform Progress: Some Basic Factors 210

L.3 Structural Reforms in the Netherlands 213

L.4 And What Happened with the Dutch Economy After 1983? 215

M Growth, Jobs and Structural Reforms in Greece / Daphne Nicolitsas 219

M.2 A Broad Picture of Recent Economic Developments in Greece 219

M.3 Final Remark 225

N Economic Catching-Up, Price Levels and Inflation Rates in Central and Eastern Europe / Balazs Egert 227

N.2 The Prices of Market-Based Services 229

N.3 The Prices of Regulated Services and Goods 231

N.4 Residential Property Prices 235

N.5 Market-Based Goods Prices 237

N.5.1 The Quality of Goods 238

N.5.2 Pricing-To-Market Practices 239

N.5.3 Limited Tradability, Local Tastes and the Importance of Local Inputs 239

N.5.4 Tax Systems 240

N.6 Inflation Differentials: Other Structural and Cyclical Factors 241

N.6.1 Economic Structures and Business Cycle Synchronization 241

N.6.2 External Factors: Oil Prices and the Exchange Rate 242

O On the Value and Need for Revising the Economic Policy Framework in the Union / Andrew Hughes Hallett 247

O.3 Structural Reforms 249

O.4 Greater Internal Coordination 250

O.5 Monetary Policy 251

O.6 Fiscal Policy and the Stability Pact 251

O.7 Does Enlargement Affect the Need for Coordination? 252

O.8 Fiscal Policy 253

O.9 Labour Market Policies and Structural Reform 254

P An Alternative Route to Europe - An Alternative for Europe? / Christian Muller 257

P.1 Perspectives for Switzerland and the EU (A Pamphlet) 257

Q Remarks on the Future Challenges of the European Union / Andras Inotai 261

Q.2 Lacking but Wanted: Identity, Vision and Leadership 261

Q.3 The New External Framework of European Integration 263

Q.4 Three

Levels of Reform Pressure 265

Q.5 Selected Areas of Challenges and Policy Imperatives 267

R Applying a Comprehensive Neo-Schumpeterian Approach to Europe and Its Lisbon Agenda / Horst Hanusch, Andreas Pyka 275

R.2 The Economic Substrate of the Lisbon Agenda 276

R.3 Comprehensive Neo-Schumpeterian Economics 277

R.4 The Indicator Based 3-Pillar Approach 280

R.4.1 Data 281

R.4.2 The Indicators for the 3-Pillars 281

R.5 Pattern Detection: Similarities and Dissimilarities 282

R.6 Empirical Results 284

R.6.1 Country Pillar Groups 1996-2000 284

R.6.2 Similarity Patterns and Performance 1996-2000 286

R.6.3 Pattern Dynamics: A Temporal Comparison of 1996 to 2000 and 2001 to 2005 Pillars 289

Appendix R1 The Indicator-Based Pillar Model 2000 295

Appendix R2 The Indicator-Based Pillar Model 2005 297

Appendix R3 Country Abbreviations 298

S Ageing and Economic Growth in Europe Assessing the Impact of Systemic Pension Reforms / Werner Roeger 301

S.2 The Model 302

S.3 Model Calibration 309

S.4 Standard Policy Experiments 311

S.5 EU Pension Scenarios 313

S.5.1 The Baseline Scenario: Letting the PAYG System in Place 314

S.5.2 Scenario 1: Debt Financing of Additional Pension Spending After 2005 315

S.5.3 Scenario 2: A Partial Move to a Funded System 316

T The EU Emissions Trading System and Its Sustainability Impact on European Industry / Raimund Bleischwitz, Katrin Fuhrmann 319

T.2 The EU ETS: Political Background and the Mechanism 319

T.2.1 Main Characteristics of the EU ETS 321

T.2.1.1 Coverage and Duration 322

T.2.1.2 Allocation 323

T.2.2 Linkage 324

T.3 EU ETS: The Development 325

T.4 Impacts on Energy-Intensive Industries 330

T.4.1 The Cement Industry 332

T.4.2 The Steel Industry 332

T.4.3 The Aluminium Industry 333

T.5 Impacts Towards Sustainable Energy Supply Systems 334

U Is a European Constitution for an Enlarged European Union Necessary? Some Thoughts Using Public Choice Analysis / Friedrich Schneider 341

U.2 Six Basic Elements of a Future European Constitution 342

U.3 The Design of European Legislation 344

U.4 The Subsidiarity and Fedealism Principles as Safeguards Against Government Growth and Centralization Tendencies 346

U.4.1 The Subsidiarity Principle 346

U.4.2 Fiscal Federalism in a European Constitution 347

U.5 The Tax Base of the European Government 348

U.6 Institutions of Direct Democracy in a Future European Constitution 349.

Notes:

Includes bibliographical references.

ISBN:

3540740546

9783540740544

OCLC:

173807412