Globalization or europeanization? Evidence on the European economy since 1980

The past 15 years have witnessed a steep growth in world trade. Almost half of that growth is due to the increased integration of the European economics, The European Union's (EU) decisions to complete the single market and move towards a common currency have created a single set of rules governing economic activity in Europe. We argue that these changes imply a process of 'Europeanization' of Europe's economies, As a result, the largest European corporations have increasingly focused their investments across Europe and worked to gain market share within the EU. Our results imply that at least part of what we call globalization is the result of states' deciding to build rules for market integration in Europe. States continue to play an essential role in market building.