WHITHER THE GAINS FROM EUROPEAN ECONOMIC-INTEGRATION

This paper discusses the appropriate welfare function for analyzing the impact of European integration. It is concluded that this function is too complex to be quantified with any precision. Concentrating on real income gains, the paper analyzes some simple methods to measure ex post the impact of European integration, in particular from die internal market programme. There seems to be some evidence of a structural increase in die level of Community GDP since 1987, but its size, permanence or precise link with the internal market are difficult to establish.