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Money Can't Buy EU Love: European Funds and the Brexit Referendum

Author

Listed:
  • Jan Fidrmuc
  • Martin Hulényi
  • Cigdem Börke Tunali

Abstract

We explore the role of the transfers that UK regions received from the European structural and cohesion funds, as well as other economic and social factors, in determining the support for the Remain vote in the Brexit referendum. We .nd that past European transfers have played virtually no role in the referendum. Economically strong regions tend to be in favor of remaining in the EU. Somewhat surprisingly, the intensity of immigration from the EU is positively correlated with the Remain vote.

Suggested Citation

  • Jan Fidrmuc & Martin Hulényi & Cigdem Börke Tunali, 2016. "Money Can't Buy EU Love: European Funds and the Brexit Referendum," CESifo Working Paper Series 6107, CESifo.
    • Handle: RePEc:ces:ceswps:_6107
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp6107.pdf
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    References listed on IDEAS

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    1. Nauro Campos & Fabrizio Coricelli & Luigi, Moretti,, 2015. "Norwegian Rhapsody? The Political Economy Benefits of Regional Integration," Working Papers halshs-01267252, HAL.
    2. Sandy Dall'erba & Julie Le Gallo, 2008. "Regional convergence and the impact of European structural funds over 1989–1999: A spatial econometric analysis," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 219-244, June.
    3. Doyle, Orla & Fidrmuc, Jan, 2006. "Who favors enlargement?: Determinants of support for EU membership in the candidate countries' referenda," European Journal of Political Economy, Elsevier, vol. 22(2), pages 520-543, June.
    4. Campos, Nauro F. & Coricelli, Fabrizio & Moretti, Luigi, 2014. "Economic Growth and Political Integration: Estimating the Benefits from Membership in the European Union Using the Synthetic Counterfactuals Method," IZA Discussion Papers 8162, Institute of Labor Economics (IZA).
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    Cited by:

    1. Yann Algan & Sergei Guriev & Elias Papaioannou & Evgenia Passari, 2017. "The European Trust Crisis and the Rise of Populism," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(2 (Fall)), pages 309-400.
    2. Julia Bachtrögler & Harald Oberhofer, 2018. "Euroscepticism and EU Cohesion Policy: The Impact of Micro-Level Policy Effectiveness on Voting Behavior," Department of Economics Working Papers wuwp273, Vienna University of Economics and Business, Department of Economics.
    3. Riccardo Crescenzi & Marco Di Cataldo & Alessandra Faggian, 2018. "Internationalized at work and localistic at home: The ‘split’ Europeanization behind Brexit," Papers in Regional Science, Wiley Blackwell, vol. 97(1), pages 117-132, March.
    4. Torben M.Andersen & GiuseppeBertola & JohnDriffill & ClemensFuest & HaroldJames & Jan-EgbertSturm & BrankoUroševic, 2017. "Chapter 2: Economic Policy and the Rise of Populism – It’s Not So Simple," EEAG Report on the European Economy, CESifo, vol. 0, pages 50-66, March.

    More about this item

    Keywords

    European integration; economic voting; cohesion policy;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration

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