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Internal migration and EU regional policy transfer payments: A panel data analysis for the EU-28 member countries

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  • Peter Schmidt

Abstract

This paper analyses the effects of EU regional policy transfer payments on net migration flows among the EU-28 countries. The hypothesis is tested that EU transfer payments do hamper internal migration across the EU. On the one hand, this is done by reestimating the results found by Egger, Eggert and Larch (2014): "Structural Operations and Net Migration Across European Union Member Countries", Review of International Economics, 22(2), pp. 352-378 for a longer time period, who basically tested a NEG model where they derived the above hypothesis from. On the other hand, a more neoclassical model of the migration-regional policy-nexus is tested. Like in Egger et al. (2014) a significant effect of EU regional policy expenditures on net bilateral migration among the EU-28 member countries is identified. However, contrary to Egger et al. (2014), the effect is not negative but positive. On average, a one percentage point increase of structural funds expenditures in percent of GDP leads to an increase in the measure of net bilateral migration by about 0.2-0.6%. Hence, EU regional policy transfer payments spur instead of hamper internal migration across EU member countries.

Suggested Citation

  • Peter Schmidt, 2016. "Internal migration and EU regional policy transfer payments: A panel data analysis for the EU-28 member countries," ERSA conference papers ersa16p172, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa16p172
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    More about this item

    Keywords

    EU regional policy; structural funds; internal migration; convergence; European integration;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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