Regional Income Differences within a Common Market



The Treaty of Rome is an agreement between six independent nations who want to be members of a greater community. The six countries bind themselves to a gradual removal of barriers to internal trade and to movements of capital and labour. They further undertake to harmonise their economic policies and to transfer parts of their sovereignty to the institutions of the European Economic Community. We can say that the six countries have committed themselves to change a group of nations into a system of regions.


International Trade Capita Income Transportation Cost Member Country Poor Country 
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  1. 1.
    B. Ohlin, Interregional and International Trade (Cambridge, Maes., 1933)1311.33–4.Google Scholar
  2. 3.
    J. B. Bhagwati, ‘The Pure Theory of International Trade’, EJ LXXIV (1964) 1–84, esp. pp. 29–32.Google Scholar
  3. 4.
    H. G. Johnson, International Trade and Economic Growth (1958) chap. I.Google Scholar
  4. 5.
    G. Myrdal, Economic Theory and Underdeveloped Regions (1957).Google Scholar

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© Palgrave Macmillan, a division of Macmillan Publishers Limited 1970

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