Elise S. Brezis


Professor of Economics


Curriculum vitae



Head, Forum Macro of Israel


Department of Economics


Bar-Ilan University, Israel



Europe and Israel: The Effects of EMU on Development and Growth


Part of a book


Elise S. Brezis
In: Israel and Europe: Common and Divergent Interests, chapter 9, Peter Lang, 1995, pp. 165-175

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APA
Brezis, E. S. (1995). Europe and Israel: The Effects of EMU on Development and Growth. In In: Israel and Europe: Common and Divergent Interests (pp. 165–175). Peter Lang.

Chicago/Turabian
Brezis, Elise S. “Europe and Israel: The Effects of EMU on Development and Growth.” In In: Israel and Europe: Common and Divergent Interests, 165–175. Peter Lang, 1995.

MLA
Brezis, Elise S. “Europe and Israel: The Effects of EMU on Development and Growth.” In: Israel and Europe: Common and Divergent Interests, Peter Lang, 1995, pp. 165–75.


Introduction

The chapter is an analysis of the effects of the EMU on the real side of the economy. The focus is on European countries as well as on small countries trading with Europe.

The chapter first analyzes the implications of a monetary union for European countries and shows that a monetary union will affect the specialization of countries. It will also affect the technology race. These effects lead to higher productivity and growth.

The second part of the chapter analyzes the effects of European concentration on countries trading with Europe. The focus is only on small countries in the vicinity of Europe that have a high ratio of human capital to labor. Israel is a perfect example of such a country. An important point is that to gain from the European Union, Israel should adopt policies that reduce the barriers with Europe.

The economic implications of political union are then examined, in light of the fact that the Maastricht treaty does not refer only to a monetary union but also to a political agenda.

Keywords: monetary union, human capital, European trading partners, country specialization