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Regional Economic Integration and Foreign Direct Investment: The Case of German Investment in Europe

Published online by Cambridge University Press:  26 March 2020

Nigel Pain  and
Melanie Lansbury
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Extract

The European Economic Community originally came into existence following the Treaty of Rome in 1957. Member states planned to harmonise their tariffs, pursue a common trade policy and liberalise intra-Community trade. All internal customs duties and quantitative restrictions on trade were successfully removed by 1968. However it subsequently became clear that this had not resulted in the full integration of product markets in Europe, with capital movements and trade continuing to be restricted by capital controls and non-tariff barriers. In the mid-1980s the European Commission identified around 300 areas in which legislative action could be taken to help the free flow of goods, services, capital and labour within the community. This led to the Single European Act in 1986 which aimed to complete the internal market by the end of 1992.

Type
Articles
Information
National Institute Economic Review , Volume 160 , April 1997 , pp. 87 - 99
Copyright
Copyright © 1997 National Institute of Economic and Social Research

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Footnotes

Earlier versions of this paper were presented at the 1996 European Economic Association Conference in Istanbul and the winter seminar meeting of the International Economics Study Group. We are grateful to Ray Barrell, John Dunning, Peter Holmes, Helen Popper, Martin Weale and seminar participants for helpful comments and discussions and to the Economists' Advisory Group and the ESRC for financial support.

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