THE EFFECTS OF EUROPE INTERNAL MARKET PROGRAM ON PRODUCTION AND TRADE- A FIRST ASSESSMENT

The paper analyzes the extent of structural changes that have occurred inside the EC since the launching of the internal market program. The first part of the paper examines intersectoral shifts in the pattern of specialization within EC manufacturing and finds relatively little change from 1986 to 1992. The second analyzes the trade impact of the internal market program, and finds that internal and external trade cr eation have both prevailed. The third uses regression analysis to expl ain the share of intra-EC imports in total EC imports in 1986 and in 1 992, and identifies the impact of the internal market program.