European capital flows and regional risk

We look at a range of issues concerning capital flows in Europe, We gauge t he extent of European capital mobility through aln examination of saving-in vestment correlations. Moreover, we provide further evidence on the extent and effect of European capital mobility through an examination of GNP/GDP r atios across the largest European countries and a comparison of these with similar calculations executed for regions within the UK. Finally, we examin e the role of private financial markets in reducing regional risk by develo ping an empirical model which is then estimated on data for the European Un ion.