Resumen de Industry, foreign trade and employment in eu countries; Comparison of France, Germany, Italy, Spain and the uk with the United States
María del Carmen Guisán Seijas
The main aim of this article is to analyze the effects of industrial and trade policy of the European Union on economic development, with particular reference to the negative effects of excessive trade deficits and industrial decline on non industrial development, real wages and employment, in some EU countries for the period 2000-2010. We compare 5 major EU countries (France, Germany, Italy, Spain and the United Kingdom) with the United States. We present some macro-econometric models and tests to quantify the positive effects of industry on non industrial economic development. The main conclusion is that Foreign Trade Deficits may lead to unsustainable development and unemployment when they are excessive and are not accompanied by industrial development policies and financial support. Our suggestion is that EU industrial policy should be more effective in order to improve development and quality of life of EU citizens and to avoid financial crisis.
