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Inward investment in the UK and the Single European Market

Bachtler, J.F. and Clement, K. (1990) Inward investment in the UK and the Single European Market. Regional Studies, 24 (2). pp. 173-180. ISSN 0034-3404

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Abstract

The impact of completing the Single European Market (SEM) on the economies ofthe Member States is predicted as a combination of economies of scale and greater competition (CECCHINI1, 988). In spatial terms, this implies a reallocation of resources to exploit the comparative advantage of different regions and countries. For the problem regions, especially those on the periphery of Europe, the integration process could lead to a variety of adverse sectoral and regional consequences. The effect of greater competition, for example, may reduce indigenous sectoral strengths and diversity and increase external control. The emergence or strengthening of agglomeration tendencies in core regions may lead to a growing centralization of investment and decision-making.