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This paper discusses the European Free Trade Agreement (EFTA), and the European Union (EU) in relation to Iceland. The fisheries sector is being treated extensively, since it is crucial for Iceland's economic survival. Finally, the paper presents various facts as to whether Iceland should join the EU or not.

Business Aviation (BA) is an important segment of nonscheduled air transport, providing personalized solutions for business trips by air. Unlike scheduled air transport or holiday charters, BA has hardly been dealt with in the academic literature. This chapter gives insight into the structure and key economic effects of the European (EU28 + EFTA) BA sector. Hereby, we differentiate between the sector’s macroeconomic footprint, in terms of jobs or gross value added (GVA), and the generation of business efficiencies and connectivity benefits for the users. Based on our own data collection and input-output analyses using data from the World Input-Output Database and Eurostat, we find that the effect of BA over the EU28 GVA is almost 0.2%. Also, some 374,000 European jobs are directly or indirectly dependent on the sector’s activities, which is more than the total number of jobs in, e.g., Cyprus. More than half of these jobs stem from the operation of business aircraft and from closely related operational services like maintenance (“MRO”) and handling (“FBO”), while the remaining employment occurs in the production of business aircraft and parts. Comparing actual European BA flights against their fastest commercial travel alternatives, key efficiencies came to light, such as average travel time savings of 127 minutes per flight, annual savings of about € 15 million in overnight hotel costs and an average 150% increase in productive work time for the travelers. Furthermore, we find that BA can significantly improve connectivity, as it serves about 25,000 city pairs not connected by nonstop scheduled air services.

With the Single Market on the horizon it seems that, at long last, a common market may soon be achieved in the EC. While this may prove to be a boon for member states it worries the countries of Western Europe′s other trade club – EFTA. One of these countries, Austria, has hinted that it may soon apply to join the Community. This article discusses the reasons behind this move and the consequences for EFTA.

International specialisation in production via the development of international trade and factor movements is the basis of much of the developed world′s prosperity. This article is concerned with the forces that drive specialisation in manufacturing in the developed countries, and particularly the role played by regional economic integration in the European Community. A distinction is drawn between specialisation that takes place within (intra) and between (inter) industries with emphasis here on the latter. Specifically, the analysis seeks to explain differences in the sectoral composition of industry between pairs of countries using regression analysis. Factor endowments, per capita incomes and country size are found to influence industrial similarity. Membership of the EC and participation in the EC‐EFTA free trade areas are associated with increased inter‐industry specialisation. Movement towards a European Economic Space could accentuate this phenomenon, with important adjustment implications.

Critical mutual benefits from Austria joining the EU are identified and discussed. Austria obtains greater economic bargaining power, loses some soverignty but retains neutrality and voice. EU gains strategic location, an educated and skilled workforce and perhaps a conscience regarding environment and small business protection. The “Anschluss” this time is a win/win situation for Austria, EU and for Europe.

Monthly 1980–2014 data are examined to determine how employment responds to money supply shocks in Canada and the United States. The focus of the analysis is a comparison of the real economies’ responses to the financial crisis and the great recession. Employment is used as a proxy for real output, though it may respond to monetary shocks with a longer lag. Vector autoregression models are specified, estimated, and interpreted. Impulse response functions are examined to assess the impact of innovations in monetary policy. A comparison of the response of employment to monetary innovations allows for evaluation of alternative business cycle theories and of the relative efficacy of Canadian v. U.S. monetary policy. Cross-border impacts are also assessed. Granger causality tests are used to examine whether money supply growth causes unemployment, whether monetary shocks cause higher or lower employment, and distinguish between short-run and long-run effects.