Network Industries, strongEconomic Stabilitystrong and Spatial Integration.pdf

Network Industries, Economic Stability and Spatial Integration * † Kenneth Button and Peter Nijkamp Abstract The evidence on the implications of transport for regional economic and political integration is mixed. This is not surprising since transport is one element of a complex web of factors that determine the extent to which spatial areas become integrated. There are also good reasons to expect the optimal level of cohesion to vary between groups of regions and variations in the degree of integration. Much of the recent attention in Europe regarding the use of transport as an instrument of integration has centered upon the creation of an appropriate infrastructure as illustrated by the TENs Programmes of the European Union. Notwithstanding questions concerning the suitability of this approach to bring about greater cohesion through investment strategies, there are also issues concerning the way operations and use of transport networks can contribute to greater spatial economic integration. The focus of recent policies has been the liberalization of transport markets and the greater involvement of the private sector in providing actual transport services. There are theoretical grounds for suggesting this can enhance both the technical and dynamic efficiency of supply and these tend to be supported by the emerging empirical findings. The difficulties with relying on market and competitive forces to provide network services is the na