Monetary union and the economic geography of Europe

Karen Helene Midelfart, Henry G. Overman, Anthony J. Venables

Research output: Contribution to journalReview ArticleResearchpeer-review

42 Citations (Scopus)


Monetary union is likely to change the spatial structure of economic activity in the EU. This article reviews what is known about these effects and discusses the implications for EMU. We argue that EMU is likely to promote a modest increase in specialization amongst EU countries, although industry-specific shocks are sufficiently small for this not to pose further difficulties for macroeconomic management. Improvements in market access are likely to raise income levels in insiders relative to outsiders. Taking a very long-term view, the urban structure of the EU might be expected to become more polarized, developing a steeper size distribution.

Original languageEnglish
Pages (from-to)847-868
Number of pages22
JournalJournal of Common Market Studies
Issue number5
Publication statusPublished - Dec 2003
Externally publishedYes

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