Essay on Regional Economics

As economic integration among nations emerges at the dominant mechanism affecting trade patterns, the global economy is rapidly evolving into a patchwork of regional blocs. International trade is no longer the exclusive domain of sovereign states; its sources are increasingly found at the supranational level, while its impacts are more and more felt in sub national regions. In addition, the increase in freer economic policies all over the globe has so undermined national authority that regional economics are inevitably opened up to international trade.

In this volume, David Hayward considers the issue of regional exposure to external economic events, exploring the role of trade in the performance of American states and regions. Using a shift share model to evaluate the contribution of exports and imports in the growth of U.S. manufacturing industries, Hayward focuses specifically on the case of trade with the European Community, analyzing the potential impacts of its deepening integration on trade with individual states.

Planners and policy makers at this level are increasingly aware of the international dimension and seek the tools with which to address it. That is why this book integrates three distinct topics of inquiry: regional economic analysis of the U.S. states; international trade and the impacts of economic integration; and the European union’s 1992 program. Thus, it is an ambitious attempt to explore the interconnectedness of supranational and regional economies. Therefore, this book is a manifest in the global reach of production systems and in the terms under which local and regional economies are integrated into the global economy.

The author states how recent years have witnessed a growing concern among state policy makers and scholars of regional economic development with the external dimensions of regional economies. The increasing globalization of the U.S. economy and its constituent regional economies has caused state governments to “go international” in their industrial development promotion programs. These efforts have caught the attention of researchers concerned with external trade’s implications for regional economies, particularly such aspects as the foreign trade component of state economies and the relative export performance.

International trade and regional economics is an exquisite piece of work. it is recommended for persons interested in International Trade, especially businesses that deal with the European Union. Hayward tries to explain the impact that European integration brought on U.S. state economies. Given the U.S.’s dominant position in the world economy the re-emergence of the Western European economies was seen as an economic treat. Reading this book we can learn the opposite that the reindustrializing Europe provided a profitable market for both American Consumer goods and investment. Indeed, several firms like Ford and General Motors established continental-scale operations in Europe and gained great advantages in economies of scale over their European competitors. Hayward concludes by evaluating the different variations in states’ trade experiences with the European Community.

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