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Ekonomska učinkovitost notranjega trga EU (EU internal Market and Its Economic Efficiency)

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Author(s): Janja Hojnik

Journal: LeXonomica : Journal of Law and Economics
ISSN 1855-7147

Volume: II;
Issue: 1;
Start page: 7;
Date: 2010;
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Keywords: internal market | EU | economic effect | free movement of goods | free movement of services | free movement of capital | foreign direct investment

ABSTRACT
Process of regional economic integration in Europe has in the last decades been determined by expansions in various dimensions – substantially as well as geographically. Market integration is thereby presented as an instrument to enhance prosperity. The article analyses economic effect of the EU internal market, i. e. whether and to what extend has the internal market enhanced economic prosperity and income in Europe in the last half-century. From methodological point of view we are dealing with a very complex question, which has been approached in various ways by various economic studies. The article is based on a study performed by a Dutch bureau CPB, which was assessing additional economic effect of the EU internal market – i.e. in addition to alternative forms of market integration, existing also in economic relations with third countries. The authoress concludes that the EU internal market has achieved the highest economic effect in the field of foreign direct investments; economic effect of free movement of goods is comparable to foreign direct investments, whereas the economic effect of free movement of services is being more moderate, however, having considerable potential for increase. Economic effect of free movement of workers is not analysed in the article considering low level of migration flows between the EU member states.
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