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European integration and the case for compensatory regional policy

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Author Info
Krieger-Boden, Christiane ()

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Abstract

The ongoing process of European integration is likely to increase trade and factor mobility thereby increasing interregional competition and affecting the interregional division of labour. From a theoretical standpoint, particularly on the basis of the New Economic Geography (NEG), rising specialization and polarization of European regions could result from this process, and could entail a growing core-periphery-divide of regional income. Hence, there may be winning and losing regions of the integration process, according to the way industrial concentration and regional specialization takes place. Such an supposition evokes questions on the need of an accompanying compensatory regional policy, and whether it can be justified from an efficiency and/or distributional perspective. Also, questions arise as to the adequate design of such compensatory regional policy, with respect to institutions, measures, and recipients. The proposed paper will start reviewing the case for regional policy in Europe on theoretical and empirical grounds. It will then discuss some options for an efficient European regional policy, and compare it to the actual EU regional policy.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p240.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p240

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September. [Downloadable!] (restricted)
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  3. Joaquim Oliveira Martins & Stefano Scarpetta & Dirk Pilat, 1996. "Mark-Up Ratios in Manufacturing Industries: Estimates for 14 OECD Countries," OECD Economics Department Working Papers 162, OECD, Economics Department. [Downloadable!]
  4. Donald R. Davis & David E. Weinstein, 1996. "Does Economic Geography Matter for International Specialization?," NBER Working Papers 5706, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. de la Fuente, Angel, 2000. "Convergence Across Countries And Regions: Theory And Empirics," CEPR Discussion Papers 2465, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE. [Downloadable!]
  7. Frank Bickenbach, 2000. "Regulation of Europe's Network Industries: The Perspective of the New Economic Theory of Federalism," Kiel Working Papers 977, Kiel Institute for the World Economy. [Downloadable!]
  8. Krugman, Paul R & Venables, Anthony J, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 857-80, November. [Downloadable!] (restricted)
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  9. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February. [Downloadable!] (restricted)
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  10. Krieger-Boden, Christiane, 2000. "Emu And The Industrial Specialization Of European Regions," ERSA conference papers ersa00p215, European Regional Science Association. [Downloadable!]
  11. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Christiane Krieger-Boden, 2000. "Globalization, Integration and Regional Specialization," Kiel Working Papers 1009, Kiel Institute for the World Economy. [Downloadable!]
  13. Davis, Donald R. & Weinstein, David E., 1999. "Economic geography and regional production structure: An empirical investigation," European Economic Review, Elsevier, vol. 43(2), pages 379-407, February. [Downloadable!] (restricted)
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  14. Midelfart-Knarvik, K.H. & Overman, H.G. & Redding, S.J. & Venables, A.J., 2000. "The Location of European Industry," European Economy - Economic Papers 142, Commission of the EC, Directorate-General for Economic and Financial Affairs (DG ECFIN).
  15. Diego Puga, 2000. "European regional policy in light of recent location theories," Working Papers dpuga-00-02, University of Toronto, Department of Economics. [Downloadable!]
  16. Greenwald, Bruce C & Stiglitz, Joseph E, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 229-64, May. [Downloadable!] (restricted)
  17. Arjan M. Lejour & Ruud de Mooij & Richard Nahuis, 2001. "EU Enlargement: Economic Implications for Countries and Industries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  18. Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(4), pages 573-593, December. [Downloadable!] (restricted)
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  19. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
  20. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
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  21. Elisenda Paluzie, Jordi Pons, Daniel A. Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor and Francis Journals, vol. 35(4), pages 285-296, June. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jörg-Volker Schrader, 2004. "Erneute EU-Agrarreform: Umbau statt Abbau von Subventionen," Kiel Working Papers 1216, Kiel Institute for the World Economy. [Downloadable!]
  2. Libman, Alexander, 2005. "Взаимодействие Государственных И Частных Структур В Интеграционных Группировах: Теоретические Подходы И Оп," MPRA Paper 17044, University Library of Munich, Germany. [Downloadable!]
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