Intra-Industry Specialization, Trade Expansion and Adjustment in the European Economic Space

In the context of post-1992 European Community (EC) trade expansion, the balance between interindustry and intraindustry specialization will be crucial. The creation of the single European market may result in increased interindustry specialization in the EC. Increased interindustry specialization is likely to create adjustment pressures that are more serious than those that accompanied earlier intraindustry specialization. If this is the case, the likelihood of defensive action against outside countries is greater, which may put the greatest pressure on countries in the European economic space.