ABSTRACT
The industrialization process from the mid nineteenth century up to the First World War was very much a European process, with increasing interaction between the nations and regions of the continent. This increase in interaction was partly the result of the industrialization process as such. Industrial growth in some areas led to strong shifts in the demand and supply functions that changed relative prices and served to widen markets. The increasing interaction was also the result of decisive measures undertaken to favour market integration. Liberalization of trade and freedom of movements of both capital and people as well as the construction of modern communication networks meant a rapid globalization of the world economy and certainly a strongly increased economic interaction within Europe. The integration of economies that within a very small area represented different levels of development as well as different institutions created much of the dynamics of growth in Europe.
