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Compensation modes of border effects in cross‐border regions

Author

Listed:
  • Roberta Capello
  • Andrea Caragliu
  • Ugo Fratesi

Abstract

Both international and regional economics discuss borders as barriers to economic growth. They hamper trade flows between areas sharing an international border (a demand effect), as well as causing firms’ inefficiency because of the increase in production costs (supply side). In the theoretical and empirical discussions, no question has been raised on whether regional economies are able to set up compensation mechanisms, by replacing low endowments with high efficiency in the use of existing assets, or by compensating an inefficient use of internal assets with an efficient use of external ones. The reply to this question has normative implications. Empirical evidence on the universe of 1,398 European NUTS3 regions is presented and policy suggestions elaborated.

Suggested Citation

  • Roberta Capello & Andrea Caragliu & Ugo Fratesi, 2018. "Compensation modes of border effects in cross‐border regions," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 759-785, September.
    • Handle: RePEc:bla:jregsc:v:58:y:2018:i:4:p:759-785
    DOI: 10.1111/jors.12386
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    3. Agata Pierscieniak & Mariola Grzebyk, 2020. "Searching Key Macro-Factors for Cooperation in Cross-Border Tourism: Institutional Matrix vs. PEST Concept," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 249-259.
    4. Roberta Capello & Andrea Caragliu & Ugo Fratesi, 2018. "Breaking Down the Border: Physical, Institutional and Cultural Obstacles," Economic Geography, Taylor & Francis Journals, vol. 94(5), pages 485-513, October.
    5. Timo Mitze & Philipp Breidenbach, 2024. "The complex regional effects of macro-institutional change: evidence from EU enlargement over three decades," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(4), pages 1443-1475, November.

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