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Description - Location of Economic Activity in the Eu by Braunerhjelm Et Al

Further European integration will increase the incentives for regional specialization of economic activity. People and firms will increasingly cluster together with those that share their particular know-how and skills. Will this lead to a polarized Europe, in which some regions buzz with activity while others decline? Not necessarily - but the danger is there. The central message of the tenth Monitoring European Integration report is that polarization is not inevitable: growth and cohesion are not necessarily enemies. Unless misguided policies determine otherwise, they are allies.

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